Netflix to embark on second round of mass layoffs

Netflix is ​​trying to get costs in line after a disastrous financial report in late April. Image / 123RF

Netflix employees can’t get enough rest.

After two dangerous months of watching his bandmates show up at his door, the streaming company is reportedly making another round of layoffs, according to Variety.

Variety sources have claimed the staff cuts are expected to be similar in size to the round of layoffs in May, of roughly 150 employees and dozens of other contractors. Among those who resigned last month were several positions in the company’s animation department, as well as a writer in the editorial department of Netflix’s Tudum.

The company has approximately 11,000 employees worldwide. Employees who will lose their jobs in the new round of layoffs at the end of the week are expected to know if they are affected.

Netflix is ​​trying to get costs in line after a disastrous financial report in late April.

It revealed a net decline of 200,000 subscribers in the first three months of this year, as a result of increased competition in the industry and a loss of 700,000 members in Russia, which was forced to suspend its services in the wake of Vladimir Putin’s invasion. . Ukraine.

The sudden drop in subscribers, as well as its expectation to get rid of an additional 2.5 million paying accounts in the current quarter, has caused Netflix’s stock price to drop sharply.

Immediately after, its share price lost a third of its value, equivalent to more than 50 billion US dollars. Netflix shares are currently trading at $170, down from $605 earlier in the year and a 12-month high of $700.

Netflix has scrapped titles like the Steve Carell space force comic and Raising Dion-produced Michael B Jordan superhero series, as well as halting production on shows in development, including Ava DuVernay’s Wings of Fire and Meghan Markle’s Pearl.

The streaming device also revealed that it will be rolling out two controversial updates to its platform, the first of which is an ad-supported subscription option that allows users to pay lower fees for viewing ads.

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Netflix co-founder Reed Hastings has vehemently opposed the level of sponsored ads, but acknowledged the choice would give customers a choice.

Another step Netflix is ​​seeking is to crack down on password sharing, a practice that involves 100 million of its 222 million fee-paying members. It is currently testing a model in Costa Rica, Chile and Peru where subscribers must pay an additional fee to share their password outside the home.

Netflix employees have also run into trouble in their dealings with the company due to recent controversial releases, including Dave Chappelle’s comedy special in which he made anti-transgender comments.

Netflix employees who opposed Chappelle’s content protested internally and physically outside the company’s Los Angeles headquarters after Co-CEO and Chief Content Officer Ted Sarandos distributed memos defending Chappelle’s platform choice. .

Weeks later, Netflix sent another letter to dissatisfied employees, reiterating its support for “artistic expression” and encouraging employees who can’t do the same to quit.

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