Why is Netflix Laying Off its Employees?

Subscription streaming service company Netflix Inc. sacked a handful of staff from Tudum, a website that promotes movies and TV episodes on the streaming service, just a week after dismal subscriber growth stunned investors.

The streaming platform started laying off employees after missing its subscription target by 200,000 people and seeing the value of its stock plummet by 50% in a month.

According to two sources familiar with the cuts who asked not to be identified, the layoffs are part of a larger restructuring of the company’s marketing department. Bozoma Saint John, Netflix’s high-profile chief marketing officer, stepped down last month.

At least 10-15 employees have tweeted that they have been sacked, while the precise number is unknown.

Tudum, which offers deep dives into Netflix’s content and recommendations like “15 Killer True Crime Documentaries to Stream,” isn’t going anywhere, according to Netflix.

The site, which was called after the sound you hear when a Netflix show starts, was intended to provide subscribers early access to the company’s shows that began in Brazil as a fan festival and was then expanded to include promotions and ongoing editorial.

Netflix announced last week that the invasion of Ukraine by Russia, tough competition, and rising inflation resulted in a loss of around 200,000 customers in the first quarter of 2022. The streaming giant expects to lose even more money in the current quarter, according to a surprising announcement that alarmed investors.

Netflix has already announced a crackdown on password sharing, which is thought to occur in 100 million households, in response to the troubling statistics. By the end of July, Netflix anticipates another 2 million customers to leave the service permanently.

Netflix’s stock was trading at roughly €600 per share when it engaged the Tudum team in September 2021, as some Twitter users pointed out. It fell below $200 this week.

The streaming behemoth’s future appears to be less certain than it appeared a few weeks ago.

 



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