Netflix lays off 300 employees PC CHIP | TechBuzz

Netflix’s popularity is declining slightly. He faces a declining number of subscribers and is forced to lay off 300 employees. The layoffs cover 4% of workers, and most are from the United States. It is another wave of layoffs after May, when Netflix laid off 150 people due to a slowdown in revenue growth. In April, Netflix faced a drop in subscribers for the first time in more than a decade, and it doesn’t help that the company’s shares have fallen by about 70% this year. Netflix expects a further decline in the number of subscribers, and it is estimated that another 2 million people will cancel their subscriptions in the current quarter.

“While we continue to invest significantly in the business, we have made these adjustments to keep our costs growing in line with our slower revenue growth,” a company spokesman told CNN. “We are very grateful for everything they have done for Netflix and we are working hard to support them in this difficult change.”

Netflix is ​​still the market leader in streaming services, but as competition in the form of Disney Plus and Amazon Prime Videos grows in popularity, this situation will not last long. However, one solution proposed by Ted Sarandos, CEO of Netflix, that Netflix could somehow “pull out” is a cheaper ad subscription plan.

“We didn’t take into account a large segment of customers, and that’s people who say, ‘Hey, Netflix is ​​too expensive for me and I don’t mind advertising.’ We add an ad level; we do not add ads to Netflix as you know it today. We’re adding an ad level for people who say, ‘Hey, I want a lower price and I’ll watch the ads,’ ”Ted Sarandos said during the Cannes Lions Festival.

By: Marijan Zivkovic