In a new wave of layoffs, Netflix eliminates 300 workers.

• Most of the positions were laid off in the United States.
• Netflix will reduce expenses to maintain 20 percent profits.
• The streamer still has strong content plans, with a $17 billion budget for TV episodes and movies.

As of Thursday, the streaming service laid off about 300 employees, according to the firm.

The corporation is making cuts across a number of its business functions, with the majority of the positions lost in the United States.

The streaming giant, which has a global workforce of about 11,000 employees, made an initial wave of reductions of a comparable proportion in May. Variety first announced this week that additional layoffs would be made. At that time, Netflix fired 150 full-time employees as well as numerous contractors and part-time staff. Following that initial round of layoffs, the streamer said other rounds would occur this year as the business works to recover from its sharply declining stock price.

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Approximately 300 employees were regrettably let go today, a Netflix spokeswoman told NBC News. “While we continue to make sizable investments in the company, we made these changes to ensure that the rate of cost growth is consistent with the slower rate of revenue growth. We are incredibly appreciative of everything they have done for Netflix and are making every effort to support them during this challenging transition.

Since it said it had lost 200,000 subscribers at the end of the first quarter and anticipated losing an additional 2 million in the following three months, Netflix has lost about 70% of its value. Netflix’s shares traded at $180.93 soon after 11 a.m. ET on Thursday, up from the opening price of $180.08 per share. In January, Netflix stock was selling at about $600 per share.

Netflix stated in its most recent report that it would reduce expenses to maintain 20 percent profits. The streamer still has strong content spending plans, with a $17 billion budget for TV episodes and movies in 2022. That is approximately in line with the amount it spent in 2021.

After dominating the streaming market for years, Netflix has begun to suffer from the influx of fresh and improved rivals, such as Disney’s Disney+, Comcast’s Peacock, Paramount Global’s Paramount+, and Warner Bros. Discovery’s HBO Max. More pressure has been placed on Netflix to attract and keep subscribers as it has been losing valuable library content to companies bringing their content back home for their own streamers. This pressure has increased as there are more new platforms for customers to choose from and splashy and high-budget titles popping up on those services.

Netflix’s difficulties are made worse by the fact that the media industry, as well as the rest of the U.S. economy, is suffering from recession fears that have sent the market into bear territory. However, in the midst of the turmoil on Wall Street, Netflix is not the only Hollywood corporation making layoffs. In an effort to minimise expenses and its debt load after the completion of the merger between WarnerMedia and Discovery that resulted in the creation of the new firm this spring, Warner Bros. Discovery has recently laid off key employees as well.

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