Netflix has already been shunned by its subscribers and faces a legal attack from its shareholders. Internally, the employees are also gray, while the Los Gatos company is gradually giving up its libertarian corporate culture.
Netflix’s 200,000 fewer subscribers continue to wreak havoc. This time it is the shareholders of the company Los Gatos who are leading the way, as reported variety† In a lawsuit in federal court in San Francisco, they are accusing Netflix executives of violating the US securities law by “materially false and/or misleading statements“while omitting”Disclosing material negative facts about the Company’s business, operations and prospects†
Indeed, after announcing the decline in subscriber acquisition, Netflix’s action had fallen by 35%, losing 54 billion in market cap. A drop exacerbated by the platform’s second-quarter forecast, which sees two million fewer customers. Shareholders who feel cheated are asking for damages and interests that have not yet been disclosed, in compensation for “significant loss and damage“. They believe Netflix and its senior executives.”used devices, schemes and tricks to defraud“Investors.
the blues staff
Not only the shareholders are experiencing the blow of less well from Netflix. Internally, employees would be morally damaged, according to Bloomberg† If a job in Los Gatos had been a great achievement thus far – especially since the company paid quite well – the employees would have lost confidence in their company’s long-term projects. In addition, many of them have seen the value of their stocks plummet from tens of thousands of dollars to sometimes nothing at all.
According to the US agency and site The information, there are currently more scheduled departures than ever before. Some employees have also reportedly asked their management to give them more flexibility in choosing stock compensation. Difficult to hire for a company that has always promoted a very libertarian corporate culture. When it vengefully recruited between 2013 and 2021 to go from 2,000 to 11,000 employees, it has since pledged to slow its hiring and keep a close eye on your expenses†
Even the hierarchy of the workforce has evolved. In the beginning, Netflix sought senior profiles for whom it would pay double or even triple their usual income. Nowadays he also recruits juniors, at significantly lower salaries. At the top of the pyramid, we should at least see Reed Hastings and Ted Sarandos for a while. It appears that the captains had no intention of abandoning the ship.