Netflix is going through a difficult period, caused in particular by the historic loss of 200,000 subscribers. Faced with the slowdown in its growth, the number one streaming platform has decided to take drastic measures. Unfortunately, employees are the first to pay the price. Indeed, Netflix has just announced the layoff of 150 employees, mostly in the United States.
As you may know, Netflix is going through a particularly difficult time right now. A month ago, the number one streaming platform announced to everyone’s surprise the loss of 200,000 subscribers in the 1st quarter of 2022. An exceptional setback in the history of the service, who had not experienced such disappointment for 10 years.
To try to stem this phenomenon, Netflix has already considered several drastic measures, such as eradicating account sharing, which she sees as a major culprit in the company’s poor health. At the same time, Netflix also plans to launch a cheaper subscription with advertisements by the end of 2022. Be aware that it is not the only platform to opt for this strategy, since Disney + will also launch a subscription with advertisements included.
Unsurprisingly, Netflix has also decided to carry out a spring cleaning in its catalog, to the chagrin of subscribers. Indeed, many series have been canceled, some after only one season, like the excellent Funny series by Fanny Herrero, the creator of Ten percent.
Netflix fires 150 employees to cut company costs
But inevitably, it was necessary that this loss of growth necessarily impacts the 11,000 employees of Netflix. Indeed, the American company announces this Wednesday, May 18, 2022 the dismissal of 150 employees, mainly based in the United States, as part of an ongoing effort to reduce costs. Among its employees invited to take the door are also managers and staff with responsibilities.
“As we explained during the financial results presentation, the slowing of our revenue growth means that we must also slow the growth of our costs as a company. So, unfortunately, we are letting about 150 employees go today, mostly based in the United States,” a Netflix spokesperson told our colleagues at Engadget.
He pursues : “These changes are driven primarily by business needs rather than individual performance, which makes them particularly difficult because none of us want to say goodbye to such great colleagues. We are working hard to support them in this difficult transition”.
According to many American media, the morale of the employees of the Los Gatos company is at its lowest since the publication of the poor figures of the platform. Netflix’s recent internal policy updatewhich invites employees to take the door in case of disagreements on the contents of the service, obviously did not help.
Source: Engadget