Netflix Begins Second Round of Layoffs, 300 Positions Cut (EXCLUSIVE)
Layoffs have hit Netflix again, with the streamer letting go of roughly 300 staffers on Thursday.
variety.com
-
Ever wanted an RSS feed of all your favorite gaming news sites? Go check out our new Gaming Headlines feed! Read more about it here.
-
We have made minor adjustments to how the search bar works on ResetEra. You can read about the changes here.
Netflix Begins Second Round of Layoffs, 300 Positions Cut
- Thread starter DinkyDev
- Start date
variety.com
What a shitshow of a company. They need to layoff their leadership; no idea how they even got to the point of needing 11k employees.
"Former Netflix associates are advised to apply, where their grand prize will be reemployment with Netflix"
*grand prize of Netflix reemployment has no guaranteed terms, other conditions may apply*
When the overriding directive is to rein in expenditures and superfluous projects, you don't typically need to hire more people for that.
Could fire like three executives who probably caused all the issues and are making it worse for the same cost savings.
I mean…what?
That doesn't really make any sense at all with the issues Netflix has.
They already have a massive workforce, the problem might be in the fact that they constantly spend a lot of money for shit projects and overextend and have no real smart management of their resources. They weren't prepared for competition despite owning the market for over a decade as far as streaming goes, and at the first sign of a challenge they hit the panic button. They ironically don't seem to know how to do anything but scale up, which doesn't work anymore once you've had a market saturation point. Those are pretty good signs of poor resource management.
Hiring more people now is going to make the problem worse, not better.
throwing more people at a problem, and especially in software development, literally never works.
Nothing has changed with how they run. This is the result of a 10+ year bull run entering a bear market. Every major tech company is experiencing layoffs. This is actually quite small in the grand scheme of things.
They're making tough decisions and cutting costs during a difficult economic period! Corporate leadership at its finest.
That doesn't sound that extreme to me. The engineering effort alone in supporting the sheer scale they operate at has to be massive. Not including actual content development, marketing etc.
Not disagreeing that they are a shit show from the upper management and above but that's about what I expected headcount wise.
Yep. They've been drooping since ~Nov '21 like everyone else. -75% draw down puts them back to 2017 levels for their stock so you can't really expect them to continue operating like they're still worth 4X their current value and growing... This is the story many companies are facing right now.
It's always wild when someone puts into perspective the amount layoffs save over the cost of one dud movie or show. At this point there is no mega hit that could suddenly bring more eyes or accounts to Netflix because of their saturation, so it all feels like a waste.
Did they transition into owning their own studio space, props, etc or do they still rent everything? I remember reading that was a huge part of their costs as they didn't own anything long term like the other studios had which cost them a ton in the long run.
Did they transition into owning their own studio space, props, etc or do they still rent everything? I remember reading that was a huge part of their costs as they didn't own anything long term like the other studios had which cost them a ton in the long run.
Bit of a shell game, their stock is in the toilet and the only way for it to go up is two ways
1. increase revenue, aka get a ton of new people to subscribe
2. cut costs, aka fire employees and cut back on show development
They are clearly focusing on #2, I think the next few quarters are gonna make #1 way worse as a ton of people are realizing "why the fuck am I still paying a netflix sub, I never watch anything on there anymore" so we will see #2 repeat a lot for a while.
There isn't really any danger of them disappearing for a long time, they have ~$20b in debt, $6b in cash, and still earn enough from netflix sub fees to be profitable and stay in business for a long time. But when things go bad it can accelerate quickly, if say they lost 10m subs one year, its higher odds they'd lose another 20m subs the year after than gain new subs and that kind of fall from grace would be the time to think the company is in deep trouble.
1. increase revenue, aka get a ton of new people to subscribe
2. cut costs, aka fire employees and cut back on show development
They are clearly focusing on #2, I think the next few quarters are gonna make #1 way worse as a ton of people are realizing "why the fuck am I still paying a netflix sub, I never watch anything on there anymore" so we will see #2 repeat a lot for a while.
There isn't really any danger of them disappearing for a long time, they have ~$20b in debt, $6b in cash, and still earn enough from netflix sub fees to be profitable and stay in business for a long time. But when things go bad it can accelerate quickly, if say they lost 10m subs one year, its higher odds they'd lose another 20m subs the year after than gain new subs and that kind of fall from grace would be the time to think the company is in deep trouble.
Well according to this thread they should be hunkering down and employing more people while they struggle as this is clearly a result of their favorite show being cancelled! Growing companies expanding? Nonsense!
They do own studios spaces, etc., but Netflix is even still more a distributor than a production company, so a ton of money still flows outside them.
I know people hate Netflix right now but this post doesnt make any sense.