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Streaming Service Giant Netflix Bids Farewell to 4% of Its Workforce

Netflix continues to layoff employees with 300 workers dismissed
Netflix continues to layoff employees with 300 workers dismissed

Netflix’s subscriber losses have been staggering this past year, with thousands of people unsubscribing from the streaming service every few weeks, giving the company more than its share of headaches.

The company has had its fair share of ups and downs. Recently, they parted ways with 300 employees.

One month after laying off 150 employees, four% of the Netflix workforce got cut loose on Thursday.

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Netflix released a statement on Thursday to address the recent layoffs.

“Today, we sadly let go of around 300 employees,” said the company. “While we continue to invest significantly in the business, we made these adjustments so that our costs are growing in line with our slower revenue growth.”

“We are so grateful for everything they have done for Netflix and are working hard to support them through this difficult transition,” Netflix added.

Netflix has been facing an array of problems, including inflation and the Russian invasion. The company is also competing with other streaming services that have grown in popularity.

They projected an additional 2.5 million subscribers in the first quarter, but instead registered a net loss of 200k customers.

Altogether, the streaming company has an impressive subscriber base of 221.6 million people. 

Netflix’s subscriber base is predicted to lose 2 million people in the second quarter of 2022, and Netflix will announce their numbers next month.

The share price of Netflix has seen steep falls in recent years. From a high point near $508.25 per share, it is now trading at around 360-odd dollars after registering its results from last year.

Last week, fears about Netflix’s sustainability and profitability grew.

Netflix is exploring the idea of lower priced, ad-supported streaming services in an attempt to attract new subscribers. CEO Reed Hastings revealed this during their earnings call in April. 

The company has not yet added the cheap option to their service, but it’s possible that they might do so in a year or two.

Netflix is working hard to stop people from password sharing. The company has been testing different methods in Chile, Costa Rica and Peru so far.

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