Netflix to cut about 1,000 jobs amid slower growth

Netflix will cut about 1,000 jobs, or 6 percent 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 prioritize our people and resources,” co-CEOs Ted Sarandos and Greg Peters wrote in an internal memo, according to several US media outlets.

Article continues after this advertisement

Now firmly established at the top of the video streaming market, Netflix is no longer able to grow at the same pace as before.

FEATURED STORIES

ENTERTAINMENT

ENTERTAINMENT

ENTERTAINMENT

In the second quarter, revenue rose 13.4 percent from the same period a year ago, slower than the 16.2 percent rate in the first quarter.

The Los Gatos, California-based company is forecasting 11.7-percent growth in the just-finished third quarter.

Several media outlets reported a decline in time spent on the platform after years of uninterrupted growth.

READ: The ultimate streaming showdown: Netflix vs iFlix vs HOOQ

Article continues after this advertisement

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.

Article continues after this advertisement

“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 percent since the start of the year. /ra