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Netflix cuts 300 jobs in second round of layoffs

By Nithya Bose in Employment News, posted June 24, 2022

Netflix has slashed another 300 employees in its second round of layoffs after a drastic drop in subscribers for the first time in more than a decade.

The layoffs accounted for around 4 percent of the streamer's workforce and mostly have an affect on US employees.

The latest round of dismissals come after the corporation laid off 150 employees last month.

The company said: “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.”

In February, it announced a global loss of 200,000 users at the start of 2022, with a forecast loss of 2 million subscribers in the following quarter.

The firm attributed the decline to a variety of causes, including increased competition, the economy, the Ukraine crisis, and the significant number of people who share their accounts with non-paying households.

Last month's layoffs mostly impacted the company's personnel in the United States. Advocates and former staff claim several employees from underrepresented groups were dismissed at the time.

The corporation also appeared to be scaling down on some of the diversified content it had financed in the years after George Floyd's death.

Former Netflix worker Evette Dionne commented on the previous layoffs: “Nearly everyone I see on LinkedIn posting about being laid off worked on diversity, equity, and inclusion across the company.”

“These are not the only people being laid off, but they comprise too many of the 150 for it to be coincidence.”

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However, the company has denied those reports.

A company spokesman said its diverse, audience-focused channels such as Con Todo and Strong Black Lead are a priority for the company and that they are “investing heavily in them”.

“We’re committed to inclusion on-screen, behind the camera and in our workforce. We are making changes to how we support our publishing efforts, including bringing some of this important work in-house.”

Netflix's diverse, audience-focused channels, such as Con Todo and Strong Black Lead, are a priority for the firm, as per a representative, and they are "investing heavily in them."

To counteract member losses, the production company is considering introducing advertising to the service in exchange for a lower-priced subscription, a step it has long avoided.

Netflix CEO Ted Sarandos stated on Thursday, June 23, that the business is in negotiations with many companies about advertising deals.

It has been reported that it was in talks with Alphabet's Google and Comcast's NBCUniversal about prospective marketing alliances.

Source: The Guardian

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