Did Netflix layoff people during 2008 recession?
I know Netflix layoff people due to performance. Just wondering if Netflix layoff people specific to the economy downturn?
They did not have then and their policy is to not layoff due to economic situation in the future either. It is mentioned in their culture memo as well.
I recall watching Reed Hasting’s interview where he mentioned they had to lay off 1/3 staff during economic downturn. See on YouTube his interview with Reed Hoffman
That was the dot com bust. That lay-off, which left the company with only the top performers, is what helped create the culture deck that exists today of only keeping highly productive and collaborative team members.
I see ok
I’ve a read a book by their former CHRO, she wrote they had to lay off one third of their 120 employees in 2001 when dotcom bubble bursted. After that they changed a philosophy of workforce planning, and decided to invest into super talented multitaskers and not to retain people when they don’t need their skills anymore. That’s why they believe that they are safe from layoffs, cause right here right now they only have people they need for current business challenges and don’t have any passengers.
This is complete BS. Netflix has 9000+ employees today, do you think they all are rockstars? Most of the employees at Netflix are mediocre at best. HR is great at BSing and that is what Netflix culture deck is today.
Thanks for the insight!
The question should be: “Will entertainment streaming services suffer during an economic downturn”. Therein lies the answer.
Yes, many of them suffered and laid off people. I am not sure about Netflix. They might held to their engineers despite losing money
Netflix will have more demand during a recession. More unemployed folks will have more time to watch tv and will get more value from their subscription