Netflix lays off more employees, indicating trouble for streaming giant
Netflix may no longer be the streaming giant it once was.
And its public troubles may belie bigger issues behind the scenes.
According to The Verge, Netflix is laying off more employees.
About 150 — including 26 staffers at their fan-site “Tudum,” several agency contractors, and others.
Layoffs At Netflix
The current round of layoffs appear to be triggered by “slowing revenue growth.”
The Verge quotes Netflix spokesperson Erika Masonhall:
“These changes are primarily driven by business needs rather than individual performance, which makes them especially tough as none of us want to say goodbye to such great colleagues.”
Troubles at Netflix began earlier this year, when they announced they’d lost upwards of 200 thousand subscribers by February.
“Our slowing revenue growth means we are also having to slow our cost growth as a company.”
Most of those laid off appear to be US-based.
How did we get here?
It’s no secret why they’re struggling.
Earlier this year, Netflix announced two extremely unpopular plans:
To crack down on password sharing, and to implement a “cheaper, ad-supported” tier of user.
While they were initially planning for both of these to begin “in the next year or two,” their current financial struggles indicate these could happen sooner.
And it’s any wonder why anyone would want to cancel their account.
For one, the streaming giant’s biggest shows may rake in massive viewer-counts.
But there’s no way they’re seeing a return on the reported $30 million spent on each episode of Stranger Things Season 4.
Their doubling-down on transphobic content, and defense of Dave Chappelle probably didn’t help much either.
Netflix Originals are often cancelled within the first 2 seasons without plot resolution.
So it’s becoming increasingly difficult to justify investing in these newer shows.
Streaming platforms are becoming a dime-a-dozen, with cheaper alternatives like Apple TV+, HBO Max, and Disney+ offering far superior libraries for significantly less.
Netflix may need to rethink their entire business model if they have any hope of surviving the next few years.
Someday soon, “Netflix and Chill” could become obsolete.