Netflix (NFLX.US) reportedly plans to lay off about 5% of its staff: The streaming giant faces growth pressure and trims its workforce ahead of earnings report.

According to reports, Netflix (NFLX.US) plans to lay off about 5% of its employees as early as next week. A spokesperson for the streaming video service company declined to comment. According to regulatory filings, as of the end of last year, the company had 16,000 full-time employees, 68% of whom are based in the United States.

Since Netflix began bidding for Warner Bros Discovery last year, its share price has fallen by around 42%. Market investors believe that Netflix’s bid for this entertainment industry giant has exposed its development shortcomings—since Netflix has traditionally not engaged in large-scale acquisitions. Warner Bros was acquired this week by the newly renamed Skydance Corp. (SKYD.US).

Investors have also taken note of Netflix’s struggles with user retention. In the latest financial reporting period, active user engagement on the platform grew by only 2%, while its Emmy award count fell to a ten-year low.

In recent years, Netflix has rolled out multiple initiatives to boost revenue: launching a lower-priced ad-supported subscription plan, cracking down on account sharing, and increasing membership pricing. However, the company’s revenue growth has recently slowed.

Last week, Netflix co-CEO Ted Sarandos admitted at a film and television industry conference in Los Angeles that the company’s growth rate has not met expectations. Netflix is currently ramping up its investment in live events, podcasts, and gaming, and has introduced programming from France’s TF1.

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