Netflix is now the most popular of the OTT platforms. The best platform for watching movies and television series and OTT series has subscribers all over the world. That number exceeded a few crores long ago. Netflix currently has 220 million subscribers worldwide. But a few days ago, bad news came for Netflix.
The platform lost 2 lakh subscribers in just 100 days. This is the first time in a decade that this has happened on Netflix, a US-based video streaming platform and production company. As a result, the world’s most popular OTT platform has laid off 150 workers.
In a statement issued on Tuesday (May 17th), Netflix announced plans to cut 150 employees by reducing its subscriber base. The workers were fired from the California office in the United States. This number is only 2 percent of the workers working in North America.
However, Netflix did not disclose from which department the staff was being laid off. According to a report in the Los Angeles Times, Netflix is cutting staff from the Recruiting, Communications, and Content divisions.
Netflix said in a statement: We do not want to lay off employees. Even so, owning one is still beyond the reach of the average person.
Shares of the OTT platform fell 25 percent to 262 in the first quarter of the current fiscal year. Which is a little more than 20 thousand rupees in Indian currency. The company said that Netflix is facing such a loss. The company blames Corona, the Russia-Ukraine war, and password sharing as the reason.
Netflix has also faced stiff competition in recent years with the launch of several other streaming platforms, including Disney Plus, HBO, and Amazon Prime Video. In the last three months, the number of subscribers of the company has also been declining.
In a letter to shareholders, Netflix feared that the number of subscribers could drop by another 2 million in the next three months, from May to July. In such cases, the authorities indicate restrictions on the use of the same account by sharing passwords. Now they will monitor the sign-up of new members.
In addition to layoffs, the company is also cutting its own content. Earlier this month, Megan Merkel canceled the development of the next series of the animated series ‘Pearl’ to cut costs. The popular OTT platform is taking some more steps including layoffs to compensate for the financial loss.