When Netflix laid off 150 employees last month, we told you that it would only be the beginning. There will be more Netflix layoffs this week. Many people will get their pink slips by the end of the week, according to Variety. Obviously, it sucks for the people going through this, but you had to have seen this coming.
After announcing that it lost 200,000 subscribers, the stock has been tumbling ever since. Shares of the company were trading north of $600 in January. As of this writing, the company’s shares are hovering around $175. Which is insane.
The company has been thinking of new strategies to stymie the selloff. Looking into an ad-supported option, which would cost the company huge sums of money. As someone who QA’s content for online services told me, Netflix would have to go through all their original content (tv shows and films) and re-edit them for ad breaks. Which would require a huge amount of time and money to make that happen.
More Netflix Layoffs Were Seen Coming.
Still, the media continues to discuss the crowded market that Netflix is in now. How every service is chomping at the bit to take some market share. There are two major (and nuanced) issues why the company took a tumble: (one) their price increase, and (two) lockdowns were lifted.
It wasn’t woke culture or competition. Netflix is charging the highest price for their content. In a tightening market, is Netflix worth keep with their “throw shit at the wall and see what sticks”. Which leads to their new model of making less and more quality projects.
Netflix saw their highest subscription rates during the pandemic lockdowns. Now, many people have to go back to work and don’t need the service as much anymore. Coming out of the lockdowns and their huge price increase, it was a perfect storm for them. Face it, they charge more than Amazon, and they don’t offer two-day shipping.