Netflix makes urgent decision and fires hundreds of employees

Amid a difficult year for the business, Netflix is ​​laying off 300 employees, in addition to the 150 that were laid off last month.

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Amid a difficult year for the business, Netflix is ​​laying off 300 employees in New York.

“While we continue to invest significantly in the business, we have made these adjustments so that our costs grow in line with our slower revenue growth,” a company spokesperson told CNN Business on Thursday.

“We are so grateful for everything they’ve done for Netflix and we’re working hard to support them through this difficult transition.”

Impact

Netflix has 11,000 full-time employees, so layoffs have a 3% impact on the company’s workforce. Layoffs have occurred especially in the United States.

In April, according to Netflix, for the first time in more than ten years, streaming lost subscribers. This sent shockwaves through Wall Street as investors began to whittle billions of dollars off the company’s market value. Therefore, Netflix has seen its shares fall by about 70% this year alone.

other layoffs

Also, in May, Netflix laid off 150 employees, blaming the slowdown in revenue growth. The company has been looking for ways to reverse this phase of losses and put streaming, which has 221.6 million subscribers, back to the top.

To this end, ideas include developing a lower price ad level and curbing the sharing of passwords by subscribers.

loss of subscribers

According to a Netflix report released to shareholders on April 19, the platform lost 200,000 subscribers in the first quarter of 2022 alone.

The company had, at the end of 2021, 221.8 million subscribers, however, in the first three months of 2022 there was a drop and the number of subscribers became 221.6 million, being the first record of a drop in the total number of subscribers. subscribers in a decade. Still, Netflix still holds the lead in the global streaming market.

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Image: Michael Vi / Shutterstock.com

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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