Losing Many Subscribers, Netflix Lays 150 Employees

 


Netflix has laid off about 150 employees and also cut off ties with dozens of contractors. This is the result of Netflix's disappointing earnings report.

Launching from The Verge, a source familiar with the situation said that Netflix had terminated 26 contractors working on the Tudum website, a place for users to get complete information regarding the content of movies or TV series on Netflix.


Previously, Netflix had fired about 25% of its marketing employees, including dozens of employees who worked at Tudum. There are 26 currently laid-off workers who were notified of the layoffs via email, which Netflix spokeswoman Erika Masonhall said was sent by the contracting company.



Netflix told The Verge that most of the laid-off Netflix employees were in the United States.


"As we explained about revenue, our (Netflix) slowdown in revenue growth means we also have to slow down our cost growth as a company. Unfortunately we have to let go of about 150 employees today, most of whom are based in the US," said Masonhall.


He explained that this decision was driven by business needs rather than individual performance, which made it very difficult for the company because none of the employees wanted to say goodbye to a great coworker.


"We are working hard to support them through this very difficult transition. A number of agency contractors have also been affected by the news announced this morning. We are grateful for their contribution to Netflix," concluded Masonhall.


In its first quarter 2022 report, Netflix revealed that it had lost 200,000 subscribers globally compared to the fourth quarter of 2021.



Netflix also predicts there will be bigger losses later on even up to two million subscribers in the second quarter.


Russia's invasion of Ukraine was also seen as a factor in the loss of Netflix subscribers, which Netflix had to shut down in Russia in March.


As previously reported, to cope with a shrinking subscriber base, Netflix plans to launch a cheaper package but with ads. Netflix CEO Reed Hastings initially said this plan would still be considered in the next year or two.


Netflix also said it was focusing on finding the best way to monetize accounts other than those who live in the same household. They admit that the account sharing feature may be able to drive growth rates.

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