BUT Netflix to lay off 300 more peopleto adjust to slower revenue growth and offset the loss of customers. The notice had already been left by the company’s financial administrator when the results were presented in April.
On high, Spencer Neumann acknowledged that the company over the next two years, I will be prudent in my investment decisions and in the management of the businessafter accelerated growth during the pandemic and with activity resuming to more modest levels.
In a statement this Thursday, the company announced layoffs and explained why it is doing so. “While we continue to invest heavily in the business, we have made these adjustments to ensure our costs rise in line with slower revenue growth.”
Exits represent about 3% of the workforce companies and are announced about a month after another 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 by sharing access with these accounts.
For a decade of activity the past few months have been the first time the company has seen a decline in the number of customers, a new fact that sounded the alarm and will lead not only to layoffs. The company already admitted in April that it was also considering subscription plan changes and introduction ad-enabled service modalities.
This Thursday, during an appearance at the Cannes Lions advertising festival, the co-CEO of the company Ted Sarandos confirmed that the platform is already testing a new subscription package. and that he has spoken to potential partners on the proposal. In this range, he singled out companies such as Google, NBCUniversal or Comcast.
The official explained this decision by saying that the company is losing a significant portion of customers who think Netflix subscriptions are too expensive and who don’t mind watching ads.to access a cheaper subscription option. He also ensured that the introduction of this new option would not change anything for those who do not want to use it: “We have added a promotional offer. We don’t add ads to Netflix as we know it today.”emphasized in statements cited by Time.
Not The company’s investment plan includes a budget of $17 billion to maintain. Producing its own content has been one of the competitive advantages of Netflix, which seems to remain committed to this path.
