Netflix is one of the most idolised brands. It not only offers an opportunity to work with people who changed the way we watch TV but also pays well. Evidently, making it one of the most desirable jobs in Hollywood.
Netflix’s share has dropped down to the lowest in five years, and that is jeopardising its main asset, its employees. This decline has jolted up the employees and their confidence. Employees who once had millions of dollars are left with nothing now. Numerous people have been looking to leave Netflix more than ever in the past week. They have even asked to issue new stock grants to compensate for the losses.
The culture was always the secret of success for Netflix, co-founder Reed Hastings and his co-chief executive officer Ted Sarandos have always strived to preserve the culture while getting the company to where it is now. In 2013, there were 2,000 employees working for Netflix, but it grew to more than 11,000 employees by the end of last year.
The company is now in cost-cutting mode. There is more pressure to deliver, and top authorities cannot overlook even the smallest of mistakes. Netflix is not going to hire any more people and will look over its spendings now. It is already reestablishing the engineering department to different levels such as junior, senior and so on. Many of them see this as a way to cut costs. Netflix has always been a flat organisation, there were executives at the top, and people in teams were always working at the same level.
Netflix has cancelled a number of titles, including animations and feature films. Netflix also said that it would be testing new ways to keep its revenues and expenses in check. They also said that they would react to people sharing their passwords and showing user ads as well. Netflix has started to charge users for sharing their accounts. Viewers will be charged between £1.53 – £2.30 extra for having more than two profiles. Netflix is planning to implement a similar trial program running in Chile, Costa Rica and Peru, where for a discounted price, subscribers can share their passwords with another household.
Netflix lost 200,000 subscribers in the first quarter of the year, and its stock price fell by more than 35%. Moreover, it is expected to lose more customers by June 2022. This is the first time in a decade that customers have failed to grow despite some huge hits like Squid Game and Bridgerton.
Initially, when the company started, it hired only stars and paid them double or triple of what they would have gotten elsewhere. They did not hire any low-level employees, but now Netflix is large enough to have different levels of tires in the company to operate better. They are aware that their culture is in jeopardy, and it is turning out to be like some other company rather than the company it was, with employees having more freedom.
