It’s been quite a transformative season at Netflix, but I didn’t quite understand how much the business had changed until I started playing with some hidden numbers amid the latest round of layoffs. from Netflix.
Those layoffs, according to an internal memo obtained by The Hollywood Reporter, totaled 316 people, which the company said represented 3% of its workforce. Simple math (although it’s true that the math is never easy for journalists) indicates that 3% means there were 316 layoffs out of approximately 10,000 employees.
Also read: Netflix cuts another 316 workers
It’s not a huge slice of a multi-billion dollar business, but it’s… not great, especially for the hundreds of lives disrupted by the sudden end of dozens of well-paying and previously needed positions.
More generally, this means that Netlfix, by its own accounts, has something like 9,700 workers. Just six months ago, in late 2021, Netflix filings showed the company had 11,300 employees.
So where did the other 1,600 jobs go? The difference between 11,300 and 9,700 is considerable, a drop of more than 14% in less than six months, or about one in seven employees.
Netflix has a notoriously rigorous culture that pays employees extremely well, but promptly kicks them out with a nice severance package if they somehow fall short.
But even with the turnover that can be attributed to this human resources policy, we can precisely trace back to only 641 redundancies reported since March. The other 1,000 jobs that disappeared were approved positions that the company did not fill when someone left.
The cuts come at a time when the company is already doing a lot and plans to do more, as it spends $17 billion this year on content.
It already operates 40 production centers around the world that find, produce and deliver local content to over 220 million subscribers in more than 190 countries. And the company is building an ad-supported tier (a whole new business), and can dive into live-streamed events (a new business) and deeper into longer theatrical releases with much larger marketing budgets ( a very old business to be done very differently). It also launched a video game division last year that acquires development studios and titles.
You can see where some of the money spent by the company is going. I was in one of Netflix’s elegant Hollywood office towers last week, for a preview screening of The Gray Man. The Russo Brothers spy thriller, which created four of the greatest Marvel Avengers films for Disney, marks Netflix’s most expensive swing ever to create a new franchise.
I won’t break the embargo with details on The Gray Man, which has a limited theatrical release in two weeks and debuts on Netflix a week after that, on July 15. But let’s just say you can see seemingly every penny of the $200 million they spent on screen, as an all-star cast travels locations across multiple continents amidst the roaring mayhem of the tallest ship.
It’s not the only highlight of the summer release schedule, either.
One of Netflix’s enduring hits, The Umbrella Academy, returned last week, and the second half of season four of another of Netflix’s biggest hits, Stranger Things, debuts Friday. The company puts a lot of great stuff on screen. But it turns out that in the future they will do it with a lot less people.
In fact, Netflix’s workforce is now only slightly larger than it was at the end of 2020, when the early months of the pandemic complicated hiring, recruiting and retention. The number of employees grew at its lowest rate in five years, albeit by a still notable rate of 9.3%, to reach 9,400 workers.
Now, the company has quietly gone through an almost complete reset of its operations, even as it embarks on a series of new initiatives while continuing to spend all that money on new shows.
Company executives have been actively reassuring glum agents, production companies and stars that they intend to keep spending on all sorts of projects. And they want to create more big event projects, like The Gray Man, Stranger Things and The Umbrella Academy.
But here are the key questions of Netflix’s Great Reset: What’s not getting done, of all the initiatives new and old, when you’re getting rid of about one in seven employees? And will customers notice? It should be a fun summer.
David Bloom of Words & Deeds Media is a Santa Monica, CA-based writer, podcaster, and consultant focused on the transformative collision of technology, media, and entertainment. Bloom is a senior contributor to numerous publications and producer/host of the Bloom in Tech podcast. He taught digital media at the USC School of Cinematic Arts and regularly lectures at many other universities. Bloom has previously worked for Variety, Deadline (opens in a new tab), Red Herring, and the Los Angeles Daily News, among other publications; was vice president of corporate communications at MGM; and served as associate dean and director of communications at the USC Marshall School of Business. Bloom graduated with honors from the University of Missouri School of Journalism.
David Bloom of Words & Deeds Media is a Santa Monica, CA-based writer, podcaster, and consultant focused on the transformative collision of technology, media, and entertainment. Bloom is a senior contributor to numerous publications and producer/host of the Bloom in Tech podcast. He taught digital media at the USC School of Cinematic Arts and regularly lectures at many other universities. Bloom has previously worked for Variety, Deadline (opens in a new tab), Red Herring, and the Los Angeles Daily News, among other publications; was vice president of corporate communications at MGM; and served as associate dean and director of communications at the USC Marshall School of Business. Bloom graduated with honors from the University of Missouri School of Journalism.
How does Netflix use intrinsic motivation?
The Netflix Formula for Targeting Intrinsic Motivation means providing opportunities to make contributions through increased independence, skills, and confidence. See the article : A Young Actors student sang on Broadway with the benefit of Arts for Autism. What that looks like in practice is summarized in former Netflix talent director Patty McCord’s manifesto: Netflix Culture: Freedom and Responsibility.
What is Netflix’s competitive HR strategy? Netflix’s HR policies encourage managers to lead by example on how to create a work-life balance for their teammates. Whether it’s taking a long paid vacation or playing games at work. Managers promote everything in a good balance for their team by doing it themselves.
How does Netflix motivate their employees?
At Netflix, employee motivation is about “talent density and engaging challenges.” According to McCord, great coworkers and tough challenges are the biggest assets to working — and keeping working — at a company.
What are examples of intrinsic motivation in the workplace?
Examples of intrinsic motivation On the same subject : Amazon Prime Video: Everything you would like to see in June 2022.
- Participate in a team building game because it is fun and enjoyable rather than looking for a reward.
- Learn a new skill, like coding, because you like experimenting with new things, not because it’s necessary.
What is the source of intrinsic motivation?
In intrinsically motivated behaviors, the reward is the activity itself. The most recognized theory of intrinsic motivation was first based on people’s needs and motivations. On the same subject : The fire causes damage worth $ 100K at the Western Hills Sports Mall. Hunger, thirst and sex are biological needs that we are driven to pursue in order to live and be healthy.
How has Netflix changed society?
1 By creating compelling original programming, analyzing its user data to better serve subscribers, and most importantly, allowing people to consume content the way they prefer, Netflix has disrupted the television industry and forced cable companies to change the way they do business.
Why is Netflix so important? This platform succeeded in shaking up the conventional aspect of cable television and brought great technological innovations such as digital streaming and machine learning. Netflix has been in the market for twenty years and continues to add innovative insights day by day.
How has Netflix changed the way we watch TV?
But when Netflix took charge, it gave us the power to control. Now viewers could be responsible for when they watch something, instead of the other way around. To add to that, we also now have access to a plethora of content. Something we never really had with cable TV.
How do people benefit from Netflix?
Benefits of Netflix Premium
- Enables streaming of 4K (Ultra High Definition) content. Although you need a 4K TV device to enjoy all the benefits, these types of TVs are common today and provide an excellent viewing experience. …
- Allows viewing on 4 simultaneous screens. …
- The audio quality is better.
What is the social impact of Netflix?
Netflix’s greatest impact is creating empathy and understanding through the stories we tell. We believe that more people deserve to see their lives on screen and we are committed to creating opportunities in front of and behind the camera for people of all backgrounds and cultures.
What are three potential positive influences of the Netflix way culture?
The Netflix culture is unique to Netflix, with different sounds. It not only encourages employees to make independent decisions, shares information openly, widely and carefully, is very honest with each other and keeps people very efficient.
What kind of culture does Netflix have? What we enjoy most is working with talented people in a highly creative and productive way. That’s why our core philosophy is that people come first, and why we try to bring great people together into a dream team. Of course, any growing business requires process and structure.
What is the positive influence of Netflix way?
Netflixers enjoy a high level of freedom and responsibility within their “Netflix way” culture. Direct feedback is encouraged, trust and discretion are the ultimate guardian as employees have access to sensitive information and are ultimately trustworthy in how they spend items and take vacations.
How does the Netflix culture contribute to the success of the company?
This organizational culture helps make the media streaming company competitive in terms of innovation. Through cultural cues, Netflix strengthens its strategic position in the industry. Netflix’s corporate culture encourages employees to explore new ideas and ways to achieve their work goals.
What is the competitive advantage of Netflix?
Netflix prices its service to optimize its content spend, and this strategy and the quality of its content has allowed it to charge more than its peers, giving it a competitive edge.
Does Netflix have a competitive advantage? While the competition has eroded Netflix’s competitive edge, there are still key ways for it to have an edge. The company’s massive global audience makes it the most attractive streaming partner for creators, who want their content to be presented to as many eyes as possible.
What is the competitive strategy of Netflix?
Netflix’s competitive cross-country strategy focuses on leveraging experience and learning to maintain a vibrant economy of scale. The more paying subscribers Netflix can attract, the more profitable it can be.
