Netflix Continues To Struggle, Announcing Another Round Of Hefty Layoffs
(LibertySociety.com) – There are reports Netflix is getting ready to hand down another round of layoffs as its stock continues to plummet. In May, the streaming service already gave pink slips to about 150 employees in an attempt to cut costs. Low first quarter 2022 earnings, a sharp plunge in subscriptions, controversy about cracking down on password sharing, and dismal earnings forecasting are causing Netflix to make some drastic moves to stay afloat.
This will be Netflix's second round of layoffs, after letting go of 150 employees, dozens of contractors and part-time workers back in May. https://t.co/mP8oNmLihN
— Variety (@Variety) June 20, 2022
Netflix’s stock started at $597.37 per share at the beginning of 2022 and closed at a mere $175.51 per share on June 17. That’s a drop of over 70% for the company and its shareholders.
Although the struggling streaming service hasn’t confirmed which departments the impending layoffs will affect, the first round eliminated about 2% of the company’s workforce. The slash in staff left only 11,000 employees behind to run its operations worldwide.
With so many other streaming services now available for users to enjoy, there’s no reason for subscribers to stick around if they aren’t happy with Netflix, and that’s bad news for the future of the company.
Netflix refused to make a comment about the layoff report.
Do you think the streaming service will be able to stabilize its company and recover?
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