More layoffs are coming soon for Netflix.
Netflix is cutting more people. This time it may be even worse as the company laid off 150 employees and dozens of contractors in May, just two months ago. They now announced another round of pink slips coming soon.
Netflix announced that it has laid off 300 people — about 3% of its workforce — owing to slowing revenue and the recession. In May, Netflix laid off 150 employees from its news team, bringing the total number of those to let go to more than 200 in the last two months. Last month, it also dismissed a large number of editorial staff from Tudum, which had only just been launched in December.
“Today, we sadly let go of around 300 employees,” Netflix said in a statement Thursday. “While we continue to invest significantly in the business, we made these adjustments so that our costs are growing in line with our slower revenue growth. We are so grateful for everything they have done for Netflix and are working hard to support them through this difficult transition,” a company spokesperson said in a statement.
Netflix is in trouble, and it seems like everyone has noticed. The company’s stock price has fallen nearly 70% since its quarterly earnings were released last spring, which triggered an investor sell-off that left shares at the north of $600 before they bottomed out today with a value of around $175 per share. The streaming service fell victim to its success as fewer people became interested than ever, resulting in less revenue coming through affiliate fees or ads on TV shows/movies played while watching another program via a web browser.
Netflix is an American entertainment company founded by Reed Hastings and Marc Randolph on August 29, 1997, in Scotts Valley, California. It specializes in and provides streaming media, video-on-demand online, and DVD by mail. In 2013, Netflix expanded into film and television production and online distribution. The company is currently headquartered in Los Gatos, California. Netflix had over 148 million subscribers worldwide as of January 2018. As of the fourth quarter of 2017, Netflix reported 86 million paying streaming subscribers.
Netflix’s initial business model included DVD sales and rental by mail, but Hastings abandoned the sales about a year after the company’s founding to focus on the DVD rental business. In 2007, Netflix expanded its business by introducing streaming media while retaining the DVD and Blu-ray rental service. The company added Blu-ray format in 2008.
Netflix entered the content-production industry in 2013, debuting its first series Lilyhammer. Since 2012, Netflix has taken more of an active role as a producer and distributor for both film and television series. To that end, it offers a variety of “Netflix Original” content through its online library. By January 2016, Netflix services operated in more than 190 countries.
Netflix released an estimated 126 original series or films in 2016, more than any other network or cable channel. Their efforts to produce new content, secure the rights for additional content, and diversity through 193 countries has resulted in the company racking up billions in debt—$ 6.5 billion as of September 2017, up from $4.8 billion from the previous year.
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