The Angels.– Netflix fired 300 employees on Thursday, mostly from the US and Canada, to settle their accounts after the loss of subscribers that they have been accusing since the beginning of this year.
It is the second round of layoffs for the company, which in May laid off another 150 employees after its shares plunged as it told investors its growth had stalled.
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“We are sorry that we did not see our slowdown sooner, so we could have ensured a more gradual readjustment of the business,” admitted the founders of Netflix, Reed Hastings and Ted Sarandos, in a letter distributed to the staff and collected by The Hollywood Reporter.
According to this medium, the cut affects 3% of the company’s workforce worldwide.
Most of the layoffs, 216, are in the US and Canadian offices, while there are 53 in Europe, 30 in Asia and 17 in Latin America.
“We know that these two rounds of layoffs have been very difficult for everyone, creating a lot of anxiety and uncertainty. We plan to return to a more normal course of business in the future.” the directors assured.
Despite the bad situation, the company promised that in the next year and a half its workforce could grow again by more than 1,000 new jobs, although it did not specify which areas will account for this growth.
According to the latest earnings report of the company, published In April, Netflix lost 200,000 subscribers. during the first quarter of 2022, a period in which it obtained net profits of 1,597 million dollars, below the 1,706 it achieved during the first three months of the previous year.
Our relatively high household penetration (including the large number of households that share accounts), combined with competition, is creating difficulties for revenue growth.
Among the new measures that it is considering, and that would affect consumers, the service could charge an additional charge for sharing an account with other households and start broadcasting advertising in the cheapest subscription.
