Netflix lays off another 300 employees. (Published 2022) (2024)

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Netflix lays off another 300 employees. (Published 2022)? ›

June 23 (Reuters) - Netflix Inc (NFLX. O) , opens new tab said it laid off 300 employees, or about 4% of its workforce, in the second round of job cuts aimed at lowering costs after the streaming giant lost subscribers for the first time in more than a decade.

Netflix: around 450 jobs cut

Netflix announced two rounds of layoffs. In May the streaming service eliminated 150 jobs after Netflix reported its first subscriber loss in a decade. In late June Netflix announced another 300 layoffs.

The company is trying to reduce costs while it confronts declining subscriber growth. Netflix laid off 300 people on Thursday, the second consecutive month that the streaming giant has cut staff as it confronts declining subscriber growth and a falling share price.

“Today we sadly let go of around 300 employees,” Netflix said in a statement Thursday. “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.

Netflix is laying off staff in its film division as part of a “major restructure.” According to news outlets, including Deadline, the department is expected to be split up by genre, with “bosses” for each major unit. Initial reports indicate that at least 15 workers at the streaming giant will be let go.

Why Netflix Suffered Subscriber Losses? Netflix revealed that it had lost 1 million members for the first time in two decades; it claimed that it was a result of rising inflation and increasing competition in the streaming market.

The company reported losing an estimated one million users worldwide in the second quarter of 2022, with the. But why have audiences canceled their subscriptions? One reason for the unprecedented drop in account holders is Netflix's monthly fee, which has been increasing rapidly over the past few years.

But as pre-pandemic habits return, Netflix has struggled to attract new sign-ups - and maintain the loyalty of existing members, especially as the rising cost of living leads to people cutting back. The company also faces fierce competition from the likes of Apple TV, HBO Max, Amazon Prime and Disney+.

Why the decline? Netflix's viewership atrophy may be due to implementing paid sharing, leading casual viewers to drop off and account holders to downgrade their plans or cancel their subscriptions altogether. This decline will come despite offering a lower-priced ad-supported option.

Though we strive to keep the titles you want to watch, some titles do leave Netflix because of licensing agreements. Whenever a TV show or movie license is expiring, we consider things such as: If the rights to the title are still available. How popular it is in a region, and how much it costs to license.

Does Netflix pay employees well? ›

How much does Netflix in the United States pay? The average Netflix salary ranges from approximately $72,498 per year for Benefits Analyst to $400,000 per year for Technical Program Manager. Average Netflix hourly pay ranges from approximately $17.41 per hour for Front Desk Manager to $200 per hour for Owner.

Compensation is an important aspect of employee happiness and at Netflix, 83% of employees feel they are paid fairly, 87% are satisfied with their benefits, and 77% are satisfied with their stock/equity. 86% of Netflix employees feel their work environment is positive meaning Netflix is a happy place to work.

Living our culture of freedom and responsibility, we treat you like an adult and trust you. Everyone has the ability to make an impact, a seat at the table, and is expected to contribute, create, and share.

Companies like Tesla, Amazon, Google, TikTok, Snap and Microsoft have conducted sizable layoffs in the first months of 2024. Smaller-sized startups have also seen a fair amount of cuts, and in some cases, have shut down operations altogether.

In line with the January–March 2024 estimates, the professional and business services sector has historically had the highest average number of layoffs per year, with nearly 5 million per year since 2005.

But that was when Netflix was in an exponential growth phase that carried the company to its 2021 share price high of more than $690. In 2022, Netflix reported losing subscribers for the first time in more than a decade — about 200,000 accounts in the first quarter of that year and close to 1 million in the second.

Netflix beat Wall Street expectations with strong second-quarter financial and subscriber growth (8 million subscriber adds for 277 million in total worldwide) reported on July 18.

In April 2022, after a heady era of staggering spending and explosive growth, Netflix posted its first subscriber loss in 10 years. Then it shed a million more subscribers over the next few months. The only silver lining at the time? That it didn't lose the full 2 million previously projected.

The "law of the jungle" mentality adopted by Netflix seems to work for them. Despite its unconventional approach to employment, the company has maintained a surprisingly low annual employee turnover rate of 11%, which was below the 13% average for technology companies in 2020.