Following Netflix’s record loss in subscribers, employee morale has reportedly taken a plunge.
Last week, the streaming service revealed it had lost 200,000 subscribers during the first quarter of the year, leading its stock to tumble by 26% and directly impacting employees with shares.
Recently, Netflix workers requested that leaders provide more flexibility in electing stock-based compensation.
Now, employees are thinking about leaving the company as their confidence in the future of the firm dwindles.
The company has long prided itself in company culture, emphasizing freedom, responsibility, and accountability. However, now that Netflix is looking at cost-cutting measures, it is likely that this culture will be faced with increased scrutiny and pressure from higher ups.
Already the company restructured its engineering department to create different tiers of workers as opposed to its normally flat operations. While some workers claim that this is an effort to cut pay and overall costs, Netflix claims this is to help with career progression.
It can be argued that both are true, and that Netflix’s massive workforce expansion lends it to require different levels of employees.
Still, the streaming wars have undoubtedly come to a head. Netflix once reigned king of the industry, but the success of popular services such as Disney+ and HBO Max have caused the company to take pause, and note, of what can help it sustain in the future.
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