After seeing a drop in subscribers, streaming giant Netflix cuts more than 300 workers, or 4% of its staff.
Previously, Netflix had eliminated 150 workers in April after suffering its first big subscriber loss in a while.
Although there are cutbacks across a variety of areas, most of the personnel are from the US.
A Netflix representative responded to the problem by saying, “While we continue to invest heavily in the business, we made these adjustments so that our costs are growing in line with our slower revenue growth. We are incredibly appreciative of everything they have done for Netflix and are making every effort to help them during this challenging transition.
BBC News reports that the company has already lost 200,000 customers this year and anticipates losing a further two million by the end of July.
Since it said it had lost 200,000 members at the end of the first quarter and anticipated losing an additional 2 million in the next 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.
The platform is considering several strategies to accelerate its expansion. It is currently contacting businesses to investigate the ad services to generate income. Ted Sarandos, co-chief executive of Netflix, declared at a conference in Cannes that “We’re not bringing adverts to Netflix as you know it today. For people who say, “Hey, I want a cheaper price and I’ll watch advertisements,” we’re launching an ad tier.
In order to prevent numerous users from sharing one account. The platform is also strictly enforcing its password policies.