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Netflix kicks out 300 people and confirms ad subscription option

Netflix kicks out 300 people and confirms ad subscription option

The Netflix will lay off another 300 peopleTo absorb the slowdown in revenue growth and offset the loss of customers. The notice had already been left by the company’s chief financial officer in the presentation of results in April.

On the top Spencer Newman admit that the company Over the next two years, I will be prudent in my investment decisions and in running a businessAfter exponential growth during the pandemic and with activity resuming to more modest levels.

The company announced, in a statement, Thursday, the layoffs and explained the reason for doing so. “As we continue to invest significantly in the business, we have made these adjustments so that our costs will advance in line with slower revenue growth.”

Exit cases represent about 3% of the workforce for the company and About a month after 100 people left the company. In recent months, the company has also redoubled its efforts to control illegal access to the platform, with more than 220 million legitimate subscribers and another 100 million using it, while sharing access with those accounts.

In a decade of activity, The past few months have been the first time the company has seen a drop in customers, a new fact that raises alarm bells and will not only lead to dismissal. In April, the company already admitted that it is also studying Changes to Subscription Plans and Introduction For service method with embedded ads.

This Thursday, in an intervention during the Cannes Lions Advertising Festival, the company’s co-CEO, Ted Sarandos confirmed that the platform is already testing the new subscription package And he was talking to potential partners about the offer. In this range, select companies such as Google, NBCUniversal, or Comcast.

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The official explained the decision with the fact that The company is losing a significant portion of customers who think that a subscription to Netflix is ​​too expensive and who don’t mind watching ads, to access a cheaper subscription option. He also ensured that the arrival of this new option does not change for those who do not want to use it: “We’ve added an ad show. We don’t add ads to Netflix as we know them today.”She confirmed in remarks quoted by Time.

In the The company’s investment plan maintains a budget of $17 billion for content. Producing its own content has been one of the competitive advantages of Netflix, which seems to remain committed to following this path.