Netflix to cut about 1,000 jobs amid slower growth
Netflix plans to cut around 1,000 jobs amid slowing revenue growth and reports of declining viewing time on its streaming platform.
· CNA · JoinRead a summary of this article on FAST.
Get bite-sized news via a new
cards interface. Give it a try.
Click here to return to FAST Tap here to return to FAST
FAST
NEW YORK: Netflix will cut about 1,000 jobs, or 6 per cent of its workforce, US media reported Wednesday (Oct 14), as the streaming platform experiences slower growth.
When contacted by AFP, the company did not immediately respond.
"Our mission - to entertain the world - is ambitious, and delivering on it requires us to be disciplined about where we prioritise our people and resources," co-CEOs Ted Sarandos and Greg Peters wrote in an internal memo, according to several US media outlets.
Now firmly established at the top of the video streaming market, Netflix is no longer able to grow at the same pace as before.
In the second quarter, revenue rose 13.4 per cent from the same period a year ago, slower than the 16.2 per cent rate in the first quarter.
The Los Gatos, California-based company is forecasting 11.7 per cent growth in the just-finished third quarter.
Several media outlets reported a decline in time spent on the platform after years of uninterrupted growth.
In early July, Bloomberg reported that average viewership for a series drops after the first season.
"Netflix's layoffs show that even the top streaming companies are not immune to stagnation and financial difficulties," commented Emarketer analyst Ross Benes.
"While the company will expand its sports roles, it's cutting back at a time when revenue matters much more than subscriber additions," he said. "With pressure mounting, Netflix will look to turn the tide by getting a boost from low-cost content."
The company's stock has fallen 15 per cent since the start of the year.
Sign up for our newsletters
Get our pick of top stories and thought-provoking articles in your inbox
Get the CNA app
Stay updated with notifications for breaking news and our best stories
Get WhatsApp alerts
Join our channel for the top reads for the day on your preferred chat app