Netflix (NASDAQ: NFLX) appears to be struggling as a result of the loss of growth in the tech space. It was revealed this morning that the company has conducted another round of layoffs, which evidently has been blamed on the depressed subscriber numbers of the company.
A total of roughly 300 employees were let go earlier today, which follows cuts of 150 employees that were conducted just last month, along with contract terminations for several contractors and part time employees. The cuts are said to have predominantly occurred within the firms US business unit, across multiple departments.
“While we continue to invest significantly in the business, we made these adjustments so that our costs are growing in line with our slower revenue growth. We are so grateful for everything they have done for Netflix and are working hard to support them through this difficult transition,” a Netflix spokesperson was quoted as saying to Variety.com, whom broke the story.
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Separately, the co-CEO of the company, Ted Sarandos, made it public knowledge today that the streaming service is looking to bring ads to its platform. The company is reportedly in discussions with the likes of Google and NBCUniversal as ad-partners for the platform.
In making the comments, Sarandos clarified, “We’re adding an ad tier; we’re not adding ads to Netflix as you know it today. We’re adding an ad tier for folks who say, ‘Hey, I want a lower price and I’ll watch ads.'”
Further details on the ad-supported version of the service were not provided.
Netflix last traded at $178.49 on the Nasdaq.
Information for this briefing was found via Edgar and the companies mentioned. The author has no securities or affiliations related to this organization. Views expressed within are solely that of the author. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
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