Netflix Lays Off 150 Staff as Company Scrambles To Recover From Mass Subscriber Loss

Woke Streaming Platform In Freefall

(AmericanProsperity.com) – Netflix has enjoyed massive growth over the past decade, leading it to become one of the biggest names in the streaming industry — but the bigger they are, the harder they fall. Netflix has found itself in a tailspin in recent months as it started shedding subscribers. The most recent sign of a possible decline is the company’s decision to lay off 150 employees.

Massive Layoff

CNBC confirmed the news that Netflix was laying off the workers. A company representative reportedly said Netflix didn’t want to let anyone go, but it felt the move was necessary. The spokesperson explained the company’s revenue had slowed, decreasing growth.

Netflix made it a point to tell the employees losing their jobs that the layoffs had nothing to do with job performance, adding it was nothing more than a business decision. The representative also assured those losing their jobs that Netflix will fully support them through the difficult process.

While shedding 150 jobs is certainly damaging, the layoffs only account for about 2% of Netflix’s 11,000 employees according to CNBC.

First Quarter Losses

CNBC reported that Netflix saw its shares dive 25% in the first quarter of 2022. According to the report, the company also saw a drop of around 200,000 subscribers, Netflix’s first reported customer loss in nearly a decade. Despite the poor performance in the first quarter, Netflix mentioned it expected even heavier losses in the second quarter, estimating a loss of around 2 million more subscribers.

Sharing Isn’t Always Caring

Of course, that’s only if you’re Netflix. The company claims that while streaming is becoming more mainstream and its movies are doing well, the number of accounts sharing their passwords has created an obstacle for revenue growth. Netflix noted that this particular issue combined with a competitive market has slowed revenue growth.

Is This the Beginning of the End?

Could this be it for Netflix? It’s difficult to know the answer to that question as companies can literally be on the brink of bankruptcy and still make comebacks with a few good business decisions. However, Netflix seems to be lacking that spunk at the moment.

The company did detail to CNBC that it plans to create a lower-tier membership, making it cheaper for subscribers with the hopes of attracting more customers. With that said, the new subscription would be an ad-based one, another first for a company that has been against adding commercials since the beginning. Will it be enough to save Netflix from going under?

~Here’s to Your Prosperity!