Netflix is attempting to bring costs into line after a disastrous financial report in late April. Photo / 123RF
Netflix is attempting to bring costs into line after a disastrous financial report in late April. Photo / 123RF
Netflix employees just can't catch a break.
After a perilous couple of months watching their colleagues being shown the door, the streaming company is reportedly enacting another round of lay-offs, according to Variety.
Variety's sources claimed the personnel cuts are expected to be similar in size to the round of sackings in May, roughly 150 staff and dozens more contractors. Among those let go last month were several roles within the company's animation department as well as writers in Netflix's Tudum editorial division.
The company has an estimated 11,000 employees worldwide. Staff who will lose their jobs in the new round of firings are expected to find out by the end of the week if they are affected.
Netflix is attempting to bring costs into line after a disastrous financial report in late April.
It revealed a net decline of 200,000 subscribers in the first three months of this year, a result it attributed to increased competition in the industry and the loss of 700,000 members in Russia, where it had to suspend its service as a result of Vladimir Putin's invasion of Ukraine.
The shock drop in subscribers, as well as forecasting it would shed in the current quarter a further 2.5 million paying accounts, led to a precipitous plunge in Netflix's stock price.
In the immediate aftermath, its share price lost a third of its value, equating to more than US$50 billion. Netflix's share price is currently US$170, down from US$605 at the beginning of the year, and from its 12-month high of US$700.
Netflix axed several titles such as the Steve Carell comedy Space Force and the Michael B Jordan-produced superhero series Raising Dion, as well as halting production on in-development shows including Ava DuVernay's Wings of Fire and Meghan Markle's Pearl.
The streamer also revealed it would roll-out two controversial updates to its platform, the first being an advertising-supported subscription option that would allow users to pay a lower fee in return for sitting through ads.
Stranger Things season four is the most high-profile recent Netflix release. Photo / news.com.au
Netflix co-founder Reed Hastings was previously vehemently against an ad-supported level but conceded that the option would give customers a choice.
The other move Netflix is seeking to make is a crackdown on password sharing, a practice in which 100 million of its 222 million paying members engaged in. It's currently trialling a model in Costa Rica, Chile and Peru in which subscribers are being asked to pay an extra fee to share their password beyond their household.
Netflix staff have also had a rough trot in their dealings with the company over recent controversial releases, including Dave Chappelle's comedy special in which he made transphobic comments.
Netflix employees who objected to the content of Chappelle's programme protested internally and physically outside the company's Los Angeles headquarters after co-chief executive and chief content officer Ted Sarandos distributed memos in defence of the choice to platform Chappelle.
Weeks later, Netflix issued another missive to unhappy staff, reiterating its support for "artistic expression" and encouraged employees who can't commit to the same to leave the business.
