Netflix (NFLX.US) is reportedly planning to lay off about 5% of employees: the streaming media giant is under pressure to grow and “slim down” on the eve of earnings

The Zhitong Finance App learned that according to reports, Netflix (NFLX.US) plans to cut employees by about 5% as early as next week. A spokesperson for the streaming video service declined to comment. As of the end of last year, the company had 16,000 full-time employees, 68% of which were in the US, according to regulatory documents.

Since Netflix began bidding for Warner Bros. Discovery last year, its stock price has dropped by about 42% cumulatively. Market investors believe that Netflix's bid for this giant in the entertainment industry just revealed its own shortcomings in development — Netflix has never carried out large-scale acquisitions in the past. Warner Bros. was acquired by a new company renamed Skydance Corp. (SKYD.US) this week.

Investors are also concerned about Netflix's difficulties in retaining users. In the latest financial reporting period, user activity on the company's platform only increased by 2%, while the number of Emmy Awards it received fell to a ten-year low.

Over the past few years, Netflix has launched a number of initiatives to boost revenue: launching low-cost subscription packages with ads, cracking down on account sharing, and increasing membership pricing. Recently, however, the company's revenue growth has slowed.

Last week, Netflix's co-CEO Ted Sarandos confessed at the film and television industry conference held in Los Angeles that the company's growth rate had fallen short of expectations. Currently, Netflix is increasing the layout of live events, podcasts, and video game businesses, and is also introducing content from TF1 (TF1) programs.

Netflix will release its next earnings report on October 20, local time.