Netflix has announced a new wave of layoffs that could see more than 300 employees losing their jobs. The layoffs are a result of intense competition, from rival platforms such as Disney Plus and Amazon’s Prime Video, which has seen the company’s financial performance taking a hit despite having over 220 million subscribers worldwide.
To address the new challenges the company is considering new ways of running the platform to cut costs.
“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,” Netflix said in a statement on Thursday, adding that it was continuing to hire in other areas.
The new strategies that the company is considering include an ad-supported service and tightening down on password sharing. Ted Sarandos, the company’s co-CEO, told an audience at a conference in Cannes on Thursday that Netflix was in negotiations with several firms as it seeks new advertising partnerships to cater to price-sensitive consumers.
“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’,” Mr Sarandos said.
The company recently executed a series of pricing hikes in the United States, the United Kingdom, and other countries, contributing to subscriber losses. As a result, the firm expects its subscriber base to drop by another two million by July, after losing by 200000 earlier this year.