The streaming giant is continuously facing the financial pressures on its revenue stream.
Netflix removes 300 Employees due to Decreasing Subscriptions. Yes, you heard right. Netflix has further laid off 300 employees due to increasing prices and market competition. The company is also falling behind in retaining its subscriptions.
The online streaming giant released a statement this week stating that it is hard for them to let go of such amazing talent that they hired and nurtured. The company let 150 people go in May just last month. In total it had to let go of 4% of its workforce.
The company started to reduce its workforce after it witnessed the first subscription loss in nearly a decade this April. Netflix is looking to incorporate an ad-based model into its current business model along with leading its crackdown on password sharing as an effort to grow the company’s growth.
The company officially released a statement on Thursday that it will keep on investing in the main business but it had to make minimal changes in the structure to cope with its increasing costs and declining revenues. The company also mentioned that it is still hiring new people in other areas.
Total Subscribers of Netflix
Netflix is still the market leader capturing 220 million subscribers worldwide and continues to lead the market even while facing fierce competition from Amazon Prime Video and Disney which have just started to operate in recent years. Netflix had to face a price hike in the US and UK that further raised the company’s expenses. The company stated that they are expecting to lose another two million subscribers in July. They have just witnessed a loss of 200,000 loss of subscribers earlier this year. According to a research company, in trying to save money, Netflix is losing its subscribers not only in the US and UK but also elsewhere it has its subscribers.
This Thursday, the Co-Chief Executive, Ten Sarandos told an audience at Cannes that Netflix is in talks with many companies a try to explore new advertisement partnerships to attempt to reach price-sensitive audiences. He further explained that Netflix is not adding ads to Netflix as we know it today. The company is planning to add an ad tier for people who are fine with ads if the prices are lower.
Other Tech Startups
He again hinted at the password-sharing crackdown. Feels like the viewers have had enough of Netflix and the fad is coming to an end. As the job cuts amid the US labor market crisis have led to more troubles for the streaming giant.
Previously, we also shared as Netflix fires its 150 American employees amid losing Subscribers.
Tech startups look like having a tough time as they have cut nearly 27,000 workers since May which makes the number double the ones that were recorded in 2021. The layoffs are continuing to follow in the housing sector as well, cutting off hundreds of jobs in recent weeks. The head of the Central Bank of America told the Congress members that its efforts of bringing down the increasing prices by increasing the interest rates are triggering an economic downturn but they hope to restore the price stability.