Tech layoffs continue—this time at Netflix and Masterclass

Technical layoffs keep coming. On Thursday, Netflix laid off an additional 300 employees, or about 3% of its workforce. The company had earlier laid off 150 employees in May.

“Today we let go of around 300 employees. While we continue to make significant investments in the business, we made these adjustments to allow our costs to grow in line with our slower revenue growth,” a Netflix spokesperson explained. fast company in a statement. “We’re so grateful for everything we’ve done for Netflix and working hard to support them through this difficult transition.”

This announcement is part of a recent spike in technical layoffs. More than 16,000 technical workers lost their jobs in May, while more than 7,000 have been affected so far this June. Founder and CEO of Masterclass David Rogier announced That the company had laid off 20% of its employees, or about 120 employees, for “fading to the deteriorating macro environment”.

Back in April, Netflix exposure That it had lost 200,000 subscribers – the first time in a decade that the streaming service reported a decrease in subscribers. Despite raising the prices of all its subscription offerings, the company continues to lose revenue. In January, And the company’s stock has fallen nearly 70% in the past six months.

In April, Netflix announced that it would be rolling out a new, less expensive subscription option for customers looking to sit through commercials. At the Cannes Lion Festival on Thursday, co-CEO and chief content officer Ted Sarandos said he wants the new ad-supported level to be a better experience than broadcast television. “I want our product to be better than TV,” he said. “So when I think about how ads are currently shown on streaming . . . I think there’s a lot more work to be done.”

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