Netflix lays off 300 jobs amid ongoing financial woes

The Netflix logo on top of a large office building in Hollywood, California.

photo: Chris Delmas/AFP (Getty Images)

If the story of Netflix’s ongoing financial troubles is one of the shows they put on their streaming platform, most viewers have found the whole thing very repetitive.

This latest episode follows multiple rounds of layoffs last spring Netflix: When the numbers stop rising The company is laying off another 300 employees, according to an internal memo seen by the company hollywood reporter and confirmed by the company. About 216 of the retrenched employees are from the United States and Canada, and another 53 are from Europe. Another 17 were from Latin America, but it was unclear which sectors were affected by the cuts.

Co-CEOs Reed Hastings and Ted Sarandos reportedly wrote to employees saying they “It’s unfortunate that we didn’t see our revenue growth slowing earlier, so we could have ensured a more gradual adjustment to the business.”

In a statement, a Netflix spokesperson said: “Today we regretfully laid off approximately 300 employees. While we continue to invest significantly in our business, we have made these adjustments so that our costs grow as revenue growth slows. .” The company added that they “are working hard to support [cut employees] through this difficult transition. “

It probably won’t help the company publish this (probably unrelated) tweeted the day before the cuts were announced:

Netflix has previously cut jobs about a dozen contract writer staff in April, then another 150 A month later, from their animation department and social media team.In these cases, many of the contracted writers were cut take to social media Arguing that Netflix is ​​hurting itself and its efforts to promote various shows to different audiences. Like the latest round of layoffs, the company has blamed past layoffs on slowing revenue growth.

Netflix stock price Since the company announced earlier this year Lost subscribers for the first time in company history.Many other tech companies also have suffer losses This leads to layoffs the last few weeks. nAt Felix, especially, Claiming to shareholders that it’s the user’s fault Shared passwords and intense Competition from streaming platforms like Apple TV+ and Disney+. Critics of Netflix’s business model say the difficulty is more because The company’s reliance on debt Fund its shows and close lucrative licensing deals.

Netflix’s first effort to reduce password sharing isn’t exactly possible For those Central American users who have tried the company’s remedies. Netflix also plans to release lower-cost Ad-supported layer to streaming platforms.

in their In the memo, Hastings and Sarandos said they wanted to “make significant investments in our content and people,” and further said they planned to grow their workforce by 1,500 to 11,500 over the next 18 months. It’s unclear how this assurance relates to employees who have just been fired.

This is certainly an optimistic hiring forecastbut Hastings is particularly known for his Blind support of the company. Others who have worked for the company are less optimistic. A Netflix writer who previously spoke with Gizmodo said that while CEOs continue to make millions, Netflix is ​​making more and more money. Make content, put it nicely, “Not all of them work.” Focus on a quick start Although the cost has caught up with the company’s new programming, they said.

“They have great content at times, but a lot of it is nonsense and thrown into the void,” the authors said. “Then they lose money; it’s a net loss.”

Source link