More Employees Are Reportedly Looking To Leave Netflix Right Now After Subscriber Loss

Last week, the news of Netflix suffering 2 lakh subscriber loss and erosion of nearly a quarter of its value led to a series of consequences. Not only did Netflix shares plummet nearly 35%, one of its billionaire investors William Ackman sold his 3.1 million shares at a massive loss of $400 million. And that¡¯s not all.

With the Netflix shares plunging to their lowest point in five years, the company now risks losing its most valuable resource, i.e. its star employees!

Netflix, which ranks as one of the most beloved brands, pays well and offers a chance to work with the people that changed the way we watch TV, now has to answer doubts arising in the minds of its employees.

variety

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Doubts Loom Over Employees' Minds

The record decline in Netflix¡¯s share price, precipitated by its poor financial results, has shaken employees¡¯ confidence in the company¡¯s long-term trajectory, as per a report in Bloomberg.

It has also erased the value of many employees¡¯ options. People who were sitting on tens or hundreds of thousands of dollars are left with nothing.

As per subscription-based technology publication The Information, more people are looking to leave Netflix right now than at any point in recent memory, current and former employees said this past week. Employees also asked leadership to issue new stock grants to make them whole for the losses this past week.

Also Read: Apple Employees Reject CEO Tim Cook¡¯s Return To Office Plan By Threatening To Quit

Cost-Cutting Mode

Netflix has long championed its culture as the secret to its success. The company grew from about 2,000 employees at the end of 2013 to more than 11,000 at the end of last year.

But this challenge will only get harder now that the company is in cost-cutting mode. Bosses will be under even more pressure to deliver, and less willing to give their subordinates freedom to make mistakes.

Netflix has said it isn¡¯t going to hire as many people, and will scrutinize spending. This is a company where you were supposed to be able to spend whatever you felt was necessary, as per the Bloomberg report.

Netflix is already restructuring teams in its engineering department to create levels ¨C junior, senior and so on. Many employees view this as an effort to cut costs. Netflix has always been a fairly flat organization. There are leaders at the very top, but many of the people on teams are at the same level.

Now, it remains to be seen how the company handles this testing period and gets back the confidence of its employees!

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