The news: Netflix’s latest round of layoffs is receiving strong reactions online. The company laid off an additional 150 full-time employees this week as part of its ongoing cost-cutting efforts after losing 200,000 subscribers in Q1, per Variety.
More on this: The rapid growth of the last few years fueled by the pandemic is slowing down and interest rates are rising. Like many companies, Netflix is having to reel in aggressive spending which is coming under scrutiny.
What this means: Between layoffs, the announcement of advertisements, and subscriber losses, some of the biggest damage Netflix has taken—other than its stock, which is down 70% year-to-date—has been to its consumer and employer brands.
The big takeaway: The launch of ad-supported tiers, cracking down on password sharing, and entering categories previously left to competitors makes sense for Netflix’s future. But as it enters a new and difficult chapter, Netflix is having to redefine its brand image—an effort that isn’t helped by public fallout.