Under pressure on multiple fronts, Netflix has laid off more than 200 full-time and part-time employees in a bid to cut costs.
Netflix went on a sacking spree, AXING 150 full-time and 70 part-time employees.
The streaming company has aggressively cut costs after revealing a dwindling subscriber base in its latest financial report. Netflix’s share price has fallen 68% year-to-date, wiping tens of billions off its market value.
The 150 full-time employees who lost their jobs represent 2 percent of its U.S. workforce, according to The New York Times. Deadline reported positions eliminated are mostly in its creative ranks, including people in the executive and director ranks working on original titles.
“As we explained [in reporting Q1] earnings, our slowing revenue growth means we also need to slow our cost growth as a business,” Netflix said in a statement. statement to Variety. “So, unfortunately, we’re letting about 150 employees go today, mostly based in the United States.
“These changes are primarily driven by business needs rather than individual performance, which makes them particularly challenging as none of us want to say goodbye to such great colleagues. We are working hard to support them in this very difficult transition.
The 70 part-time positions, according to Varietyare part of the animation department of the company, which had already lost a month earlier its Director of Creative Leadership and Development Phil Rynda and several other members of the team.
The animation arm also suffered a number of canceled projects that were still in development, including a long-germinated adaptation by Jeff Smith. Bone graphic novels, Meghan Markle show pearl and Ava Duvernay is wings of fire.
Other series that have been canceled in recent weeks include space force, Raising Dion and Smart enough.
The other significant victim of the Netflix fake is the editorial project team at Netflix Tudum, a spin-off fan site that provides behind-the-scenes coverage of Netflix Originals.
A group of employees of Tudum, many of whom were recruited only recently, were dismissed in the first round of layoffs as part of a wider reform of its marketing department while The edge reported 26 contractors working on Tudum lost their jobs today.
The company sent a memo to staff last week warning that employees who dislike or disapprove of some of Netflix’s titles – referring to internal resentment over Dave Chappelle’s transphobic comments on his show special on comedy – should consider working elsewhere.
Netflix’s drastic measures to control costs follow a dramatic few months at the streaming giant. Netflix is under significant financial pressure after revealing that its growth trajectory has not only stalled, but reversed.
The company saw a drop of 200,000 subscribers in the first three months of this year – its first drop in a decade – and said it expected to lose another 2.5 million in the current quarter. Netflix attributed 700,000 of membership losses to be removed from Russia.
Its earnings report immediately plunged the value of the company’s shares as investors sold their shares.
In an attempt to cushion the damage, Netflix executives, including founder and co-CEO Reed Hastings, said the streamer would introduce a cheaper, ad-supported membership tier. Hastings had previously ruled out such a move.
While no streaming platform in Australia offers a lower cost option in subscription offset by advertising, it is a popular model in the United States proposed by Max HBO, Hulu, and Paramount + Peacock.
Typically, the ad-supported option costs half that of an ad-free subscription.
Disney said it will feature an ad-supported tier on its streaming service. Today it confirmed that it would not accept advertising from alcohol brands or political parties.
Neither Disney nor Netflix has confirmed whether the ad-supported membership options will be rolling out worldwide.
Netflix also suppress password sharing, a practice that 100 million of its 222 million members to engage. Netflix has tested functionality in Peru, Costa Rica and Chile in which subscribers can legitimately share their passwords beyond their home at an additional cost, between 3 and 4 dollars a month.
The ad-supported and password crackdown option should be online before the end of the year.
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