A month after Netflix reported its subscribers were rapidly decreasing for the first time in a decade, the streaming giant has made approximately 150 staff recession.
Announced by the streaming platform on Tuesday, the recession will largely impact its US office in California. They compose around 2% of its North American labor force.
According to Netflix, the job redundancies resulted from the company’s profit plummeting. As a result, it faces a massive drop in its viewers this year.
“These changes are primarily driven by business needs rather than individual performance, which makes them especially tough as none of us want to say goodbye to such great colleagues,” said the giant in a statement.
No further details about which parts of the business would experience job recessions. However, as per a report from Los Angeles Times, recruiting, communications, and the content department were all impacted.
A few individuals shared their job loss online.
Netflix blew the industry by surprise as it revealed in April that it had undergone a loss of 200,000 subscribers in the first three months of this year and cautioned another 2 million are predicted to quit in the next quarter.
The announcement brought an investor sell-off, with the company’s stock dropping 35% in one day. It is currently trading at $190, a 46% plunge from its former premium.
Although the streaming giant boasts 220 million subscribers worldwide and still holds the market leader title, it has experienced tough competition over the past few years with the emergence of competitor services like Disney Plus, HBO, and Amazon’s Prime Video.
Last month, in its earnings report, Netflix also stated that the conflict in Ukraine and the choice to hike its prices in the US had caused the loss of its subscribers. Moreover, withdrawing from the Russian market solely had lost the platform 700,000 users.
In addition to the job redundancies, the firm is also trimming content and ramping down on its own creations. In early May, it halted the making of Pearl, an animated series made by Meghan Markle, in its measure to reduce costs.
A few analysts state that following the soar in sign-ups during the pandemic, Netflix now has dried up in finding trouble-free ways to develop business growth.
The giant says it’s seeking a less expensive, ad-based model and considering clamping down on password sharing, which has cost it 100 million households.
Netflix is not the only firm that is making job recessions. Over the past few weeks, an array of US tech firms, from emerging to established ones like Uber and Twitter, have stated that they are slacking off or halting hiring or, such as online car sales company Carvana, reported jobs cuts, pointing out a setback.
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