Netflix careers california11/12/2023 In addition to layoffs, Netflix has promised to improve its business and gain more subscribers by offering a cheaper version with commercials and experimenting with ways to make more money from password sharing.ĭespite the job losses, Netflix has said it will continue to spend massive amounts on film and television content, with an expected budget of $17 billion this year. Hastings attempted to strike an optimistic note in the email, saying that the company plans to expand its employee base by 1,500 workers to 11,500 over the next 18 months, and assuring staffers of “a clear plan to re-accelerate our revenue growth through paid sharing globally and a lower-priced ad-supported tier in the bigger advertising markets.” The statement comes after the earlier round of cuts, which affected social media accounts dedicated to content featuring the LGBTQ community and people of color, led some observers to question Netflix’s commitment to diversity and inclusion. He also said that globally, women remain 51% of Netflix’s workforce, and the people of color continue to comprise 50% of its U.S. “Each level was impacted evenly by these changes - roughly 3% of VPs, directors, managers and individual contributors were let go today,” Hasting wrote. In an memo to staffers Thursday morning, which was obtained by The Times, Netflix co-Chief Executive Reed Hastings, on behalf of himself and fellow co-CEO Ted Sarandos, apologized for not recognizing the company’s revenue problems sooner, which, he said, would have allowed for “a more gradual readjustment for the business.”Īccording to the email, the layoffs will affect 17 employees in Latin America, 30 in the Asia Pacific region, 53 in Europe, the Middle East and Africa and 216 in the U.S. Wall Street analysts, who have been focused almost obsessively on subscriber numbers during Netflix’s rise, have begun to turn attention to more traditional metrics such as profitability and revenue as the streaming market matures. The layoffs are a result of Netflix trying to preserve its profit margins after leaders misjudged how competition and other factors in the streaming market would affect revenue after the early pandemic surge.Ĭhief Financial Officer Spence Neumann said in a recent call to discuss earnings that the company hoped to maintain operating margins of 20% during the next two years. The closest competitor is Disney+ at nearly 138 million subscribers. Netflix is by far the leader in subscription-based streaming video, with 222 million paying members. The dramatic slowdown comes after Netflix subscriber numbers surged early during the COVID-19 pandemic, when people’s out-of-home entertainment options were limited. The shares declined 23 cents, or less than 1%, to $178.66 in midday trading. Netflix’s stock has fallen 70% so far this year.
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