It seems that there are some changes Netflix. On Tuesday, it was reported that the streaming company had laid off at least 150 employees as their incomes began to grow at a slower pace.
According to Forbes, a company spokesman made it clear that the recent layoffs had nothing to do with individual performance, and it was strictly based on business needs and slow revenue growth. A spokesman said “none of us want to say goodbye to such wonderful colleagues”. They added that the company intends to “support them in this very difficult transition.”
Forbes notes that in the first quarter Netflix reported losing about 200,000 subscribers, and they expect to lose another 2 million this quarter. With the loss of subscribers, the company’s shares also fell by almost 35%.
One of the factors that led to the loss of subscribers was called the exchange of passwords. The streaming service estimates that nearly 100 million families worldwide use passwords, with 30 million of those families located in the United States or Canada.
When it comes to attracting more subscribers, Reed Hastings, co-CEO of Netflix, says he is considering launching with advertising support a subscription option that was first mentioned back in April. They are also considering a program that will allow users to pay for additional profiles that they can share, similar to the system they tested in Chile, Costa Rica and Peru, where there were account holders. charged a fee for sharing passwords with other people outside their family.
A Netflix spokesman also spoke The Hollywood Reporter about the recent layoffs and said
“As we explained in terms of revenue, our slowdown in revenue growth means we also need to slow down cost growth as a company. Unfortunately, today we are releasing about 150 employees, mostly from the US. These changes are primarily driven by business needs rather than individual indicators, which makes them particularly difficult as none of us want to say goodbye to such wonderful colleagues. We are making every effort to support them in this very difficult transition. “
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