Netflix Lays Off 150 Employees At Once!

Netflix Lays Off 150 Employees At Once!

Netflix has allegedly fired off around 150 employees, the majority of whom are located in the company’s US headquarters. Slow growth and halted premium memberships have been a problem for this streaming giant for a long time now.

Netflix has definitely been in major limelight over the past few months. As we discussed earlier Netflix facing a major subscriber fall, the company’s fall is consistent for a few months now. Netflix has been facing a huge subscriber fall over the past few months because of excessive competition all over the globe. The company has taken several measures like cutting down on password sharing in order to control the fall but in spite of the measures taken the loss keeps on growing. Let’s just say Netflix’s sudden move of laying off 150 US employees at once is one of the attempts to recover from the losses. 

According to TechCrunch, not only employees but some highly creative people from Netflix’s original series vertical, including Negin Salmasi and Sebastian Gibbs, were forced to leave since the firm could no longer pay them due to poor income.

Netflix’s representative issued the following statement: “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.” He also mentioned. “These changes are primarily driven by business needs rather than individual performance, which makes them especially tough as none of us wants to say goodbye to such great colleagues.”

Netflix’s stock has recently fallen by 20%, and the firm recently revealed a loss of 2 lakh paying customers in the first quarter of the year, which is thought to be the first subscriber drop in over a decade. Furthermore, a 20 lakh global paid subscriber loss is expected in the April-June period (Q2). Talking about statistics, the net subscription addition is negative in the US, Canada, Latin America, the Middle East, Africa and European countries ringing between 0.3% – 0.6%

In April, Netflix cut off numerous seasoned writers and journalists who worked for its entertainment site, which was just created in December 2021. According to the story, Netflix sacked the majority of the Tudum culture and trends team, which had recruited seasoned entertainment journalists from publications such as Bustle, Vice, and others.

Tesla CEO Elon Musk applauded the company’s decision to tell its staff that if they don’t agree with its content, they may leave the streaming giant. “Depending on your role, you may need to work on titles you perceive to be harmful. If you’d find it hard to support our content breadth, Netflix may not be the best place for you,” the firm said. 

Geo-political tension led due to the Russia-Ukraine war and the coronavirus pandemic’s after-effects have bloodshed all stock market exchanges and Netflix is no exception to it. Netflix is currently weaker than ever, the company’s share price has dropped by 43.6% in the past one month and 72% in the past 6 months.

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