Netflix braces for more layoffs this week
by SOURAV D | VIEW 492
Netflix, the streaming media industry trailblazer, has been mulling another round of layoffs as the streaming giant looks to trim costs amid a mass-scale retreat in stock valuation. In point of fact, latest move from Netflix Inc., the California-based media streaming behemoth, came forth as the US Federal Reserve had stubbornly held on to an utterly hawkish stance despite risks of a full-blown recession, which in effect had led to a havoc-scale sell-off frenzy in US money market. Netflix Inc shares’ prices have fallen as much as 70.62 per cent year-to-date, while the streaming media giant’s first quarterly earnings’ result alongside a weaker-than-anticipated forecast dealt a hefty blow to Netflix’s stock prices.
After Netflix was quoted saying on its Q1, 2022 quarterly earnings’ report that the streaming media giant had been experiencing a contraction in number of subscriptions as shares’ views rose exponentially across the US and EU amid a lingering inflation-surge, the Los Gatos-headquartered streaming service company’s shares’ prices were jolted as much as 35.12 per cent on mid-April.
Netflix prepares further layoffs
On top of that, Netflix Inc lost as many as 200,000 subscriptions over the first quarter of 2022, which eventually added to further worries. On top of that, Netflix’s expenses spiralled upwards over recent months, as the streaming media giant had allotted more budgets on original TV shows, as competitions spurred up in streaming media industry with conventional production houses like of Disney, Warner Bros and HBO among others had launched their own streaming services and had reportedly been spending heavy money on original TV shows.
Nonetheless, while being asked over the subject-matter, a spokesperson for Netflix Inc neither acknowledged, nor wiped out the issue.