Netflix Starts Firing Employees From Their Newly Launched Companion Site: Find The Reasons Why?
Following the declaration that for the first time since 2011, Netflix has lost 200,000 subscribers in the first quarter of 2022, it has now laid off employees.
What Went Wrong
It said that rising inflation and fierce competition along with Russia’s invasion of Ukraine led to the depressing figures.
Consequently, Netflix’s shares plunged 35 percent in a single day, wiping out $54 billion in its market value.
It fired about 25 people total across its marketing department.
Netflix told TechCrunch that these layoffs affected both contract workers and full-time employees, but did not comment on whether any other departments were affected.
Netflix Magazine Team Sacked
The sacked employees worked on Tudum, the official companion site to Netflix which was launched in December.
One team of 10-12 writers and editors who worked for Tudum’s culture and trends section were sacked.
Most of them were women of colour who had been hired just months before.
They were also very experienced journalists who had been poached from publications such as Vulture, Teen Vogue and The New York Times.
Many took to Twitter to speak about their experiences and to look for job opportunities.
They said that they had been hired with the promise of more stability, new opportunities and a diverse team.
The company had also promised them astronomical pay and no story or traffic targets.
Those laid off got only two weeks of severance.
Some reported that they had not received any prior warning of the layoffs, and other workers found out their colleagues were laid off via Twitter.
Marketing Dept Restructuring
The layoffs are part of a broader restructuring of the company’s marketing department.
Its high-profile chief marketing officer, Bozoma Saint John, stepped down last month.
A spokesperson said that Tudum, the word for the sound viewers hear when they start a Netflix program- will not be closed and that it is “an important priority”.
What Exactly Is Tudum?
The initiative began as a fan festival in Brazil and then expanded to include promotions of movies and TV shows on the streaming service.
It also provides in depth details of the service’s content and series recommendations.