Is Netflix in crisis? Are we witnessing the fall of the pioneer and great titan of the world of streaming? We cannot deny that for a few months the tragedy has been chewed in the platform.
At the beginning of the year we could see how the company lost followers and how Disney + far exceeded its results in this “streaming war”. We also discovered in April that Netflix planned to include advertising on its platform and charge more if an account was shared.
And now that? The company has more things to announce to us. And they’re not exactly good.
Around 300 workers to the street
The streaming platform announced the dismissal of 300 people. This figure represents 3% of its total number of workers. Why have they made this tough decision? As expected, the growth slowdown and economic recession are the reasons.
Today, unfortunately, we laid off about 300 employees. Although we continue to invest significantly in the business, we have made these adjustments so that our costs grow in line with slower revenue growth. We are so grateful for all you have done for Netflix and we are working hard to support you during this difficult transition.
Netflix statement.
And is that Netflix continues to lose subscribers. The company lost more than 200,000 subscribers in the first quarter of the year. And the forecast for the second trimester is not very hopeful. Netflix expects to lose 2 million more subscribers.
“Ted and I are sorry we didn’t see the slowdown in revenue growth sooner so we could have ensured a more gradual readjustment of the business,” said the co-directors of Netflix, Reed Hastings and Ted Sarandos, in a note sent last Thursday to his staff.
The platform noted that the Most of the layoffs took place at Netflix offices in the United States and Canada.. About 216 employees were affected. But there were also layoffs scattered throughout the rest of the world. In fact, 53 were in Europe, 30 in Asia and another 17 in Latin America.