Mr. Mrityunjay Ojha
Netflix, the giant streaming company, fired 300 employees, or 3% of its staff, just under 2 months after firing 150 employees. The firm claims that because of its continued sluggish sales growth, it was forced to alter its costs.
In a statement released, Netflix said: "We, unfortunately, let go of about 300 workers. We made these changes even though we are still making major investments in the company so that the costs are rising at a slower rate than our revenue growth.”
The workforce strategy in many organisations has had to be rethought, often resulting in painful and disruptive changes.
According to Variety Magazine, the American OTT company had approximately 11000 employees and 2% of that number had been let go. A few months ago, Netflix let go of 150 full-time staff members as well as several part-time employees and contractors.
As per a Netflix spokeswoman, the changes have been made to ensure that the rising costs are in accordance with the slower revenue growth, even while they continue to spend a lot on the company.
Netflix had more than 221.6 million subscribers globally as of March 31, 2022. Since announcing that it had a drop in subscribers amounting to 200,000 members at the end of the quarter and anticipating losing an additional 2 million in the second, Netflix lost 70% of its value.
The world's most popular streaming service has been under pressure recently as tough competition, inflation, and the conflict in Ukraine impact user growth. Netflix has projected even greater losses for the upcoming quarter following the decline in subscribers in the first quarter.
Following the disruption of its subscription-based business model caused by the cancellation of 200,000 customers in the first quarter of 2022, Netflix is restructuring its operations. The issues have depressed employee morale and battered the stock price of the corporation.
Whether their present staff can assist them in making the transformations essential to their success is one of the main challenges businesses must address as they struggle with a continuously altering economic landscape. Employees are the backbone who enable the company to keep providing the goods and services that eventually result in shareholder profits, despite the fact that businesses frequently place a higher priority on short-term economic results than on the long-term wellness of their workforce.
Do you believe that firing people by large organisations for offences they did not commit has become common?
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