300 Employees Cut from Netflix
They aren't the only streaming giant doing so...
As the tech world’s market cap crumbles and inflation continues its raging destruction of markets, companies have been left no choice but to cut staff and raise prices. Netflix has been the newest addition to the list of companies to cut staff with the streaming giant letting go of nearly 300 employees yesterday.
The layoffs come just a week after initial reductions in staffing occurred. During the first round of lay offs, Netflix let go of 150 employees and dozens of contractors.
“Today we sadly let go of around 300 employees. While we continue to invest significantly in the business, we made these adjustments so that our costs are growing in line with our slower revenue growth. We are so grateful for everything they have done for Netflix and are working hard to support them through this difficult transition.”
A Netflix spokesperson said.
The streamer giant has lost nearly 70% of its value since announcing its loss of 200,000 subscribers at the end of Q1. According to many analysis, the company is expected to shed another 2 million subscribers in Q2. In their most recent earnings call, Netflix committed to cutting costs in order to continue producing 20% margins with plans to spend aggressively on content with a budget of $17 Billion in 2022.
With new and upcoming competition, Netflix is finally taking the ever expected blow from competitors. Disney+, Peacock, Paramount+, HBO Max, and others are doing very well giving customers that were once loyal to Netflix other alternatives.
Adding to the struggle is the fact that the media sector is being destroyed by recession fears as markets stumbled into bear markets. Netflix isn’t the only streaming service handing out lay off notices however. Warner Bros. Discovery has also cut key staffers recently, as it looks to reduce costs and its debt load following the completion of the merger between WarnerMedia and Discovery that led to the new company’s creation this spring.