Netflix Bleeds Out Employees As Subscriber Base Dwindles
(UnitedReader.com) – Netflix has found itself in hot water with subscribers. The streaming company continues to blame password sharing for lost revenue. Hundreds of thousands of subscribers have ditched the service due to some of its business decisions. Unfortunately, that dip in subscribers has led Netflix to make a difficult decision and lay off 150 employees.
Netflix is laying off around 150 employees across the company, @CNBC reports. https://t.co/lP8xLAxIFQ
— NBC News (@NBCNews) May 17, 2022
According to a report from CNBC, Netflix is planning to lay off the workers as a result of lost revenue. The outlet reported that most of the people the company plans to let go are in the US. Those losing their jobs represent 2% of Netflix’s estimated 11,000 employees.
A Netflix representative reportedly told CNBC that the company regrets the decision but has no other choice, citing slow revenue and cost growth. The streaming service made sure to let the employees losing their jobs know that it had nothing to do with their performance, adding it was a business decision.
CNBC noted many people had expected the staff reductions after Netflix reported losing subscribers for the first time in nearly a decade and the future started looking grim for the company. Despite staunchly rejecting the idea for years, Reed Hastings, co-CEO of Netflix, declared the platform may implement a lower-cost, ad-based subscription option to help make up for some of that lost revenue.
What does this mean for Netflix? Perhaps it’s the beginning of the end of the streaming giant. After all, every reign comes to an end, and the market has become extremely competitive. Or perhaps this is just a sign of Netflix changing as a company. Right now, the answer is a bit fuzzy. What do you think?
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