The Netflix crisis is already charging its first great victim: its workers, on the way to dismissal

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The Netflix crisis is already charging its first great victim: its workers, on the way to dismissal

Netflix has been in the doldrums since it announced last April that it had lost 200,000 subscribers in the first quarter of 2022. A blow that has led the streaming platform to seek different solutions to redirect the course of the company, from the inclusion from advertisements to the possibility of broadcasting live content. Now, in addition, it has announced a cost containment plan for which it has just laid off 150 workers, most of them in the United States, according to deadline.

the bleeding continues. These layoffs are added to those that Netflix already executed in April, when it fired some 25 workers from Tudum, a platform on which the streaming service shares exclusive content about its series and movies. according to Variety magazine.

and this same post ensures now that the company plans to eliminate another 70 temporary jobs from its associated animation studios, as well as cut the collaborations of freelancers in charge of running different social networks of the group.

Netflix has explained that the layoffs are due to the business needs of the company, that is, to try to contain spending after the economic downturn in the first quarter of 2022, and not for reasons related to the job performance of the affected employees.

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loss of subscribers. In April, Netflix announced the loss of 200,000 subscribers in the first quarter of 2022, and forecasts suggest that it could lose another two million more in the second quarter of this year. This was the first time the streaming platform’s users had decreased since 2011.

That news caused the company’s shares to fall 24%, a drop that was added to the 40% that had been gradually occurring in the first three months of 2022. Netflix justified its poor results by the increase in competition, the prevalence of the use of shared accounts by more users than allowed and the withdrawal of the service in Russia, where it had 700,000 users, as a result of the war in Ukraine.

redirect the situation. The first measures that Netflix took to redirect the situation and increase revenues was to announce plans to pursue and end shared accounts, on the one hand, and launch cheaper subscriptions in which advertising is included, on the other. Both projects will be developed throughout 2022 and should be implemented by 2023. It is also exploring the possibility of introducing live content on the platform.

However, all these measures are, at least, in the medium term, and the company needs to stop the drop in its income as soon as possible, which is why it has decided to cut staff to contain expenses until its plans to increase billing begin. to bear fruit

Image | Venti Views


The news

The Netflix crisis is already charging its first great victim: its workers, on the way to dismissal

was originally published in

Xataka

by Pablo Rodriguez.

Netflix has been in the doldrums since it announced last April that it had lost 200,000 subscribers in the first…

Netflix has been in the doldrums since it announced last April that it had lost 200,000 subscribers in the first…

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