technology

Netflix dismisses another 300 employees for the second time in 2 months

Netflix dismisses another 300 employees for the second time in 2 months

Following the shocking loss of over 200,000 subscribers in the first quarter of this year, streaming giant Netflix Inc. has laid off an additional workforce of 300 employees which accounts for 3% of its overall staff to cope with the lack of funds to sustain them.

The news has come just 2 months after the first dismissal of a major chunk of employees from its editorial arm Tudum in April which involved the termination of 150 staffers in May.

The company’s spokesperson stated that the decision had to be taken to recoup the losses the streaming platform has suffered due to slow revenue generation and increasing costs after the retreat of subscribers.

Furthermore, the company also claimed that it would continue to support employees through the difficult transition and is indebted for their service during their tenure.

Notably, Netflix’s records showcase that most of the dismissed employees were based in the regions of Asia Pacific, Europe, Latin America, and Middle East & Africa, excluding the United States.

Apart from Netflix, other conglomerates including Betrer.com, CoinBase, and MasterClass have undertaken a similar route over the past few months due to a lack of opportunities for a stable remuneration.

Elaborating on the crisis, Netflix has cited Russia’s invasion of Ukraine, the Covid-19 pandemic, and password sharing as reasons for the hindrances in functioning. Figures illustrate that Netflix’s stock has registered a drop of 65% since the first layoff at the beginning of the year.

On a positive note, the company has been working on initiating numerous objectives to stay afloat during this difficult period, some of which include, live streaming unscripted shows like stand-up comedies and levying additional charges if people outside a household are using the platform. It is also planning to cash in on the benefits of advertising on the streaming service.

Source Credits –

https://techcrunch.com/2022/06/23/netflix-lays-off-300-more-people-almost-3-of-its-staff/ 

About the author

Rashi Thakkar

Rashi Thakkar

Rashi started her journey in content when she was completing her MBA. Since then, she has helped well-known startups and businesses boost their online presence. Currently Rashi pens downs insightful articles for AlpenHornNews and various other websites, covering an array of sectors from finance and business to technology and healthcare.