Losing ~$24-48 million a year out of $30billion profits, Netflix lays off 150 people to recoup maybe half that
Netflix pointed the gun right at its foot, pulled the trigger, emptied the clip and is working on reloading right now.
Netflix made $30 billion last year.
They raised prices this year.
They lost 200,000 subscribers in the first quarter of 2022 and freaked out announcing punitive measures for password sharers, cancelled several development projects and series (some of which probably were done anyway,) and continued claiming they are delivering 4K content.
The market freaked and Netflix stock vomited its guts out on April 20, losing investors over $50 billion in value, while not really affecting Netflix’s bottom line.
Evidently to inspire confidence they’ve laid off over 150 employees, which assuming an average salary of 80k is about $12 million a year.
What – after threatening customers you announced a price hike for the same old crappy service and that people were not going to be able to share with their exes and you lost 200,000 subscribers? You’re only poised to make 29.8 billion this year even with catastrophic projections? Yup, time to start tossing people to the wolves and cancel shows that keep people on Netflix.
I’m sure those 150 people somehow cost investors over 50 billion dollars and not the threats and price gouging.
Netflix is at $182.69 per share as of this writing. It was at $348.61 on April 19 and has started to get better on Friday May 13, then it appears it dropped again when they announced the layoffs yesterday. I will refrain from drawing conclusions on this because a day or two of trading is not enough to spot a trend but I stand ready to smugly say everything they do is killing their investors, losing subscribers, and they need to just stop.
