Netflix lays off 300 more employees after subscriber drop; total in 2022 is 450 – Link

Netflix laid off around 300 people to adjust to new slower pace of revenue growth

Netflix laid off around 300 people to adjust to new slower pace of revenue growth

After losing subscribers for the first time in 11 years, Netflix announced the layoff of about 300 employees this Thursday, 23. This is the second cut at the company in 2022 – in May, 150 people were laid off worldwide. This brings the total to 450 people.

In a statement, the company regretted the need for the cuts. “Today, we sadly announce the dismissal of around 300 people. As we continue to invest significantly in our business, we have made adjustments so that rising costs are in line with our slower revenue growth.” First-quarter revenue grew 10% to $7.87 billion, slightly below Wall Street’s forecasts of $7.93 billion.

The drop of 200,000 subscribers in the first three months of this year was the result of the Ukraine war, which led the platform to suspend its service in Russia, leading to a loss of 700,000 subscribers. The result was not worse only because the company managed to add 500 thousand new customers in the period. In total, the company has 222 million subscribers.

To increase its revenue, the company plans to launch a version of its streaming service for movies and series that will be monetized with advertisements, as television does. According to international media, Netflix is ​​already seeking agreements with several partners to make the new business model viable.

layoffs

In March of this year, about 100 employees who worked in cloud computing at Google were laid off. Microsoft has cut the number of hires to prepare for fiscal 2022 results. Tesla, led by the world’s richest man Elon Musk, has stalled hiring. Intel did the same. Spotify has revised its plans to reduce the number of hires by 25% this year.

The wave of layoffs at tech companies has only just hit Netflix, but it started with startups. In Brazil, companies such as Mercado Bitcoin, Zak, Sami, Quinto Andar, Liv Up, Loft, Faci.ly, Olist, Kavak, Vtex and Sanar made cuts in their teams this year.

Most startups seek exponential business growth, financed with venture capital, venture capital raised with investment funds or angel investors. With the risk of global recession, inflation and interest rates increasing, companies started to borrow less in 2022, leading to adjustments in finances to keep business.

About Yadunandan Singh

Born in 1992, Yadunandan approaches the world of video games thanks to two sacred monsters like Diablo and above all Sonic, strictly in the Sega Saturn version. Ranging between consoles and PCs, he is particularly fond of platform titles and RPGs, not disdaining all other genres and moving in the constant search for the perfect balance between narration and interactivity.

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