The days are cloudy for the Netflix streaming platform. After the financial report shows the reality of your business results, the bills come knocking and your employees will pay. Last Tuesday (17), the company made a massive layoff of approximately 150 employees, the vast majority in the US.
According to Reuters information, layoffs represent 2% of Netflix employees in the United States and Canada. The specialized website The Verge heard people inside the company who claim that at least 26 of the dismissed employees worked on the Tudum website, which is a platform project aimed at fans of their Software.
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Before these dismissals, 25 employees had already been dismissed and 12 were part of Tudum.
In an official statement, Netflix confirmed the shutdowns "the changes were driven primarily by corporate needs and not individual performance".
The statement also says that it "regrets the farewell to great colleagues" and says that the company will support people "in this difficult transition".
Netflix sees 1st drop in subscribers in 10 years
For the first time in a period of ten years, the company recorded a drop in its number of subscribers, with around 200,000 subscribers dropping out of the platform.
In the understanding of Netflix, the main reason for the drop is the sharing of accounts.
The company estimated that more than 100 million households use the service without making a monthly payment. What would solve this issue is the charging of an extra fee, generating a series of criticisms and discontent from the public.
Another way to increase revenue is to offer your subscribers a cheaper plan, with ads and advertisements. This strategy is used by its competitor Disney + and is in Netflix's plans.
And everything should get worse, because the estimate for the next few months is that the platform will lose another 2 million subscribers.
Another factor that will get in the way will be the closure of the service in Russia in retaliation for the invasion of Ukraine.
While these changes are not enough, the path is to reduce expenses, says the company.
“As we explained in our financial results conference, the slowdown in revenue growth means we need to slow down our cost growth as a company.”
The chief financial officer of the Netflix platform, Spencer Neumann, said the company intends to slow its cost growth over the two-year horizon.
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