The streaming giant has lost 200,000 subscribers in the first quarter of 2022 alone.
Yes, you heard it right: Netflix fires its 150 American employees amid losing Subscribers. For a month the streaming giant, Netflix has been losing its subscribers for the first time in the last ten years. The company has been losing its revenues due to deteriorating revenue conditions. The company was, due to adverse conditions, forced to lay off 150 of its employees from its US office in California. These lay-offs account for 2% of its workforce in North America.
Netflix informed on Tuesday, that the layoffs are due to the slump condition of the market forcing the company to reduce its expenses while fighting the leaving viewers during the year. These changes are mainly driven due to the business need instead of individual job performances. This makes the entire situation very tough as the people they had to let go were talented and it was hard to bid farewell to a great lot of people. However, the company did not release any details regarding which departments would see the job losses. But according to Los Angeles Times, Netflix’s recruiting, content and communications departments will be seeing these job lay-offs.
In April 2022, the company shocked the market with the news that the streaming mogul has lost 200,000 subscribers in the first quarter of 2022 and intimated that another 2 million are expected to leave the platform in the coming three months. The news created a spark among the investors and the firm’s stock took a major hit by plunging by 35% in a single day. At the moment Netflix’s stocks are trading at $130 with a drop of 46% on its preceding premium.
Total subscribers of Netflix
While the company has 220 million subscribers worldwide and remains the prominent market leader despite facing fierce competition in recent times due to competitors like HBO, Disney Plus, and Amazon’s Prime Video. In its reports of earnings last month, the company also stated that the Ukraine war and its decision to increase its prices in the US had further caused its subscribers to leave the platform. Following the war, Netflix closed down its operations in Russia and this act has cost the service 700,000 subscribers alone.
Along with the jobs it had to lay off, Netflix is also cutting down on its original content and also pulling back on its original series. Earlier this month, Netflix announced the cancellation of its development of Pearl, a Meghan Markle starred animated series as a step to cut its expenses. Many analysts are also pointing out that a surge in the subscribers during the pandemic has now begun to fall and also Netflix has also run out of easy ways to increase its business expansion.
The company also said that it is looking for less expensive models based on ads. In previous days, the company has previously announced its step to hunt down the password sharing of subscribers, which it previously overlooked. This has ultimately resulted in more loss of subscriber base.
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The company has also announced to its employees that if they fail to agree with the platform’s content, they are free to leave the company. The move was welcomed by Tesla’s CEO, Elon Musk. As Netflix fires its 150 American employees amid losing Subscribers, there is a lot more to come in the US economic updates.