Netflix is going through a tough transition period right now. Today, the streaming service laid off 150 employees, comprising about 1.3% of the company’s 11,300 or so total workforce. This most recent round of layoffs comes after weeks of bad news, and follows earlier layoffs from Netflix’s blog, Tudum. The pain is likely not over yet.
A Netflix spokesperson wrote to Gizmodo:
As we explained on earnings, our slowing revenue growth means we are also having to slow our cost growth as a company. So sadly, we are letting around 150 employees go today, mostly US-based. These changes are primarily driven by business needs rather than individual performance, which makes them especially tough as none of us want to say goodbye to such great colleagues. We’re working hard to support them through this very difficult transition.
Back in April, Netflix released its 2022 first quarterly earnings report, which revealed that it had lost 200,000 subscribers. That drop was the first in a decade, so it hit them hard. After the earnings report, the stock plummeted.
Netflix mostly blamed its losses and slowed revenue on its ban of Russian users, unauthorized password sharing, industry competition, and high household penetration. After all, most of us have Netflix.
Now Netflix is exploring ways to limit password sharing and looking to add a paid subscription tier that includes ads within the year’s time. It is also exploring the live streaming of certain shows and events.
Source Gizmodo
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