Netflix braces for MORE layoffs by the end of the week
Netflix is gearing up for yet another wave of layoffs as the streaming platform continues to struggle with plummeting stock prices and declining subscriber numbers.
The Los Gatos, California-based streaming giant, which has 11,000 employees, is expected to notify those affected about the layoffs by the end of the week. Variety reported first.
It comes on the heels of a previous downsizing at the company, prompted by the company losing 70 percent of its share value since the spring.
Last month, Netflix laid off a total of 150 full-time employees and an additional 70 employees in its animation studios.
Another 60 or 70 contactors were also released.
Many of those who lost their jobs worked on series and initiatives aligned with social justice goals.
The streaming platform lost 200,000 subscribers in the first three months of the year and lost $54 billion in market cap in one day in April.
This is a sharp turnaround for Netflix, which saw a rise in valuation at the height of the COVID-19 pandemic.
Netflix is currently trading at around $172 a share, up from $348 a share in April.
Executives have said they expect to lose an additional two million subscribers in the second quarter.
Reed Hastings, co-chief executive of Netflix, said the company is considering introducing ads in programs watched through its cheaper subscription package, and that it will “figure out in the next year or two.”
Netflix gears up for yet another wave of layoffs at the end of the week
Netflix currently trades at $172.10 per share, up from $348 per share in April. Last month, a huge stoppage at the company was caused by the company’s 70 percent loss in value this spring
Netflix’s April subscriber loss is the first time in a decade that numbers have fallen, and a dramatic reversal from their goal of adding 2.5 million users.
Last month, Netflix CEO Ted Sarandos told The New York Times that the company’s 70 percent share decline was “horrifying, disappointing and embarrassing.”
“We make decisions based on the best information we have at the time. They won’t always be right, but how you help navigate the results, and the urgency you add to them, is what gets people through the storm. And the storms will come.’
Sarandos spoke about the ad option during his Times interview, which the company has opposed so far.
“For us, it was all about the simplicity of one product, one price,” he said, adding, “I think it can withstand some complexity now.”
He also argued that while the company should reflect on its recent successes and failures and evaluate how it got to where it is today, it is not beneficial to spend too long assessing the failures.
“How much time do you spend licking your wounds?” he said. “Let’s keep that burning in our minds, but we’ve got to move on and act fast.”
Earlier this year, Netflix also announced that several shows in development, including Prince Harry and Meghan Markle projects, would be halted.
The CEO explained that Netflix, which has signed up several celebrities with no movie experience, including former president Barack Obama and his wife, Michelle, tries to take a chance on new talent, but it doesn’t always succeed.
Last month, Netflix CEO Ted Sarandos (above) told The New York Times that the company’s 70 percent share decline was “horrifying, disappointing and embarrassing.”
Earlier this year, Netflix also announced that several shows in development, including projects by Prince Harry and Meghan Markle (above), would be scrapped.
While the company is trying to halt its trend declines and seek new growth opportunities, it is also being sued by investors who allege Netflix misled them about its subscriber growth in the six months before it reported subscriber losses, leading to a dive into the stock price.
The lawsuit, seeking class action status, was filed in federal court in San Francisco alleging that Netflix violated U.S. securities laws by making “materially false and/or misleading statements” and for “not having materially unfavorable facts.” about the company’s activities, “operations and prospects.”
The “Pirani v. Netflix Inc et al” chief accuser is Fiyyaz Pirani, a trustee of Imperium Irrevocable Trust, a shareholder of Netflix, who is named in the lawsuit seeking damages for the fall in the company’s share price this year after the company had a missed opportunity. its estimates of subscriber growth.
The lawsuit was filed days after Netflix dropped Meghan Markle’s animated series as part of a wave of budget cuts following the streaming service’s decline in subscriber numbers.
The lawsuit seeks damages for investors who traded Netflix stock between October 19, 2021 and April 19, 2022, including “compensatory damages” with an “amount to be proven at trial.”