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Netflix is ​​laying off hundreds of employees due to losing subscribers

Netflix is ​​laying off hundreds of employees due to losing subscribers

The streaming service, Netflix, announced, Thursday, the layoff of 316 employees around the world, in a move to adjust the accounts due to the loss of subscribers occurring since the beginning of 2022.

The majority of layoffs take place in US and Canadian offices with 216 offices, while there are 53 in Europe, 30 in Asia, and 17 in Latin America.

It’s the second round of expulsion

This is the second round of layoffs by the company, which in May laid off 150 more workers after its shares plunged after it told investors its growth had stalled.

“We regret that we did not see a slowdown early on so that we could ensure a more gradual readjustment of the business,” Netflix founders Reed Hastings and Ted Sarandos admitted in a letter sent to employees and compiled by The Hollywood Reporter. .

According to the entertainment industry publication, the cut affects 3% of the company’s workforce worldwide.

We know that these two rounds of layoffs were very difficult for everyone and created a lot of anxiety and uncertainty. “We plan to return to a more normal course of business in the future,” the executives said.

Over a thousand new jobs in 2023?

Despite the bad situation, the company promised that in the next year and a half its workforce could grow again by more than 1,000 new jobs, although it did not specify the areas.

According to the company’s latest balance sheet, which was released in April, Netflix lost 200,000 subscribers during the first quarter of the year, a period that reported net income of $1,597 million (€1,519 million), down from $1,706 million. US (1,622 million euros) earned in the first three months of the previous year.

Reed Hastings and Ted Sarandos noted that “our relatively high delivery of households (including the large number sharing accounts), combined with competition, creates revenue growth difficulties.”

Among the various new measures it is considering that will affect consumers, Netflix could charge an extra fee to share an account with other families and start streaming ads on its cheapest subscription package.

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