![]() The tech company says it lost 700,000 subscribers when it pulled out of Russia. Lastly, the company cited macroeconomic factors like 'sluggish economic growth, increasing inflation, geopolitical events such as Russia's invasion of Ukraine and some continued disruption from COVID.' Third, increasing competition from Youtube, Amazon, Hulu and other streamers is cutting into its market, though Netflix continues to dominate by a small margin. The company estimates that in addition to its 222 million paying households, another 100 million households are piggybacking for free. In an earnings call, CFO Spencer Neumann said the company plans to pull back some of its planned spending for the 'next two years.Ī second factor is password sharing. ![]() In its quarterly letter to shareholders dated April 19, the company said: 'Our revenue growth has slowed considerably as our results and forecast below show. Netflix reported revenue of $7.868 billion from January through March of this year, up less than 10 percent from last year and below the $7.93 billion that analysts expected. We're working hard to support them through this very difficult transition.' '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. So sadly, we are letting around 150 employees go today, mostly US-based,' a Netflix spokesperson told Deadline. 'As we explained on earnings, our slowing revenue growth means we are also having to slow our cost growth as a company. The 150 layoffs have been expected as Netflix struggles to attract new subscribers. Share prices are down by 43.6 percent from last month after the company announced it lost subscribers and failed to meet revenue expectations The company has identified four key issues that are keeping it from growing: increasing competition, slowing smart TV adoption, password sharing, and 'macroeconomic developments,' such as the ongoing COVID-19 pandemic, inflation and Russia's invasion of Ukraine. Share prices are down 43.6 percent from last month. On top of that, the streamer failed to meet revenue expectations by $62 million. It expects to lose another two million subscribers by next quarter, Fortune reports. The news comes a month after the company reported that its global subscriber base declined in the first quarter of 2022. free to send any entertainment opps my way!!'Īnd Lydia Wang tweeted: 'i was also laid off by netflix today! i really loved my job and my colleagues and i am a little heartbroken!' 'my coworkers, i love ya to death, you were the best part of all this. seriously heartbroken but incredibly proud of the work I’ve done. ![]() lucky i got to work with such brilliant people.'Ĭharlotte Walsh said: 'well, I also got laid off from Netflix today. 'it was a wild ride and i'm really proud of the work that i did, particularly being part of the launch, and feel v. Madelyn Chung, also a writer for Netflix, tweeted: 'unfortunately i, too, was affected by the netflix layoffs today. Garcia said that she knows 70 people so far laid off, and many of them from under represented communities. 'Please consider me for your freelance assignments. Just when I thought I was out of the woods, I was laid off by Netflix today, along with dozens of the most talented people I've ever met. So it's not shocking to me.'Īnother writer, Tess Garcia, tweeted: 'Last week was the most difficult week of my life. 'I feel like I've been working in media for a second, and am primed to expect a layoff. Khan, who has been in the industry for four years, said she was used to the constant layoffs. She told that she had worked at Netflix for three months, working remotely from New York City writing social media posts and marketing content. 'prob gonna chill for a little bit but if you guys have any freelance work i'm ur girl! i do essays, news blogs, features, profiles, you name it. i got laid off from netflix!' tweeted writer Aamina Inayat Khan, 26. Last month, the company laid off people in marketing-related jobs, including contractors who had been there less than a year. A few director-level executives may also be on their way out.Īs of December, Netflix had about 11,300 full-time employees, meaning that the cuts represent about 1 percent of its global workforce.Ī little less than half of the staff is based in Los Angeles, with many of the rest at the company's headquarters in Los Gatos, in the Bay Area. The California-based streaming service is even eliminating some executive positions in its original content departments, sources told Deadline. Most of the employees being laid off are based in the US and work in creative positions across film and TV. Netflix is cutting about 150 jobs after announcing that it's lost 200,000 subscribers since the end of last year.
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