Netflix (NFLX.US) Reportedly Plans to Cut About 5% of Staff: Streaming Giant Under Growth Pressure, Slims Down Ahead of Earnings

Netflix (NFLX.US) is reportedly planning to cut about 5% of its staff as early as next week. A spokesperson for the streaming video service company declined to comment. According to regulatory filings, the company had 16,000 full-time employees as of the end of last year, 68% of whom were in the United States. Since Netflix began bidding for Warner Bros. Discovery last year, its stock price has fallen about 42% cumulatively. Market investors believe that Netflix's bid for this entertainment industry giant precisely exposed its own development shortcomingsbecause Netflix has traditionally never pursued large-scale acquisitions. Warner Bros. was acquired this week by a new company renamed Skydance Corp. (SKYD.US). Investors are also paying attention to Netflix's difficulties in user retention. In the latest earnings cycle, activity among users on the company's platform grew by only 2%, while the number of Emmy Awards it won fell to a ten-year low. Over the past few years, Netflix has launched multiple initiatives to boost revenue: introducing a lower-priced subscription tier with ads, cracking down on account sharing, and raising membership prices. But recently, the company's revenue growth has slowed. Last week, Netflix co-CEO Ted Sarandos admitted at a film and television industry conference held in Los Angeles that the company's growth rate has fallen short of expectations. Netflix is currently stepping up its push into live events, podcasts, and video games, and has also brought in programming content from France's TF1. Netflix will release its next earnings report on October 20 local time.