Netflix lays off 300 employees due to subscriber loss

Netflix This Thursday, it laid off 300 employees, mostly from the US and Canada, to close their accounts. It’s the loss of subscribers to blame since the beginning of this year.

This is the second round of layoffs for the company that was laid off in May. 150 more employees after their shares fell acknowledging to its investors that its growth has stalled.

“We’re sorry we didn’t see our slowdown sooner, so we could be sure. more gradual readjustment of work”He admitted Netflix founders Reed Hastings and Ted Sarandos in a letter distributed and collected to staff by The Hollywood Reporter.

According to this environment, The outage affects 3% of the company’s worldwide workforce.

Most layoffs, 216, in US and Canadian offices, There are 53 in Europe, 30 in Asia and 17 in Latin America.

“We know you two rounds of layoffs have been very difficult for everyone, creates a lot of anxiety and uncertainty. “We plan to return to a more normal workflow in the future.”

Despite the bad situation, the company promised next year and a half staff can grow again with more than 1,000 new jobsbut did not specify which areas would monopolize this growth.

According to the company’s latest earnings report released in April, Netflix lost 200,000 subscribers during the year. first quarter of 2022a period of net profit 1.597 million dollars, below 1,706 achieved in the first three months of the previous year.

“Our relatively high penetration in homes (including the large number of households sharing accounts) coupled with competition creates challenges for revenue growth.”

Among the new measures he is considering and that will affect consumers, service, may charge additional fees for sharing the account with other households and start advertising on the cheapest subscription.

Source: Informacion

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