Netflix is making some major changes to its marketing strategy and laying off some employees as a result. The streaming giant has been here since the beginning. They are a true trailblazer for what the streaming market is today. They revolutionized the way video rentals worked and killed off the competition, which refused to adapt to the technological changes. However, a lot has changed as everybody is getting ready to launch their own streaming services with their own original content. It's now time for Netflix to adapt to some pretty big changes.
According to a new report, 15 Netflix employees are getting let go as they shift their marketing to promote the brand as a whole, rather than their individual projects. Those 15 people are believed to lose their jobs within the next week, though that has not been officially confirmed as of this writing. It's also not clear how this will affect their marketing down the line in terms of the general public taking notice. It is believed that specifics are still being worked out at this time.
Netflix declined to comment, but it is believed that this new advertising structure will take all of the original programming, A-list and beyond, to market it in a way that is consistent with the brand as a whole. Additionally, it is believed that the streaming service could be letting more than 15 people go. As of October, Netflix had around 6,900 people working for them. As for where this new strategy is originating from, it is believed that Jackie Lee-Joe, who was hired from BBC Studios over the summer following former chief marketing officer Kelly Bennett's retirement, is the one behind it all.
With such huge original titles like Stranger Things, The Witcher, The Crown, Roma, The Irishman, and Marriage Story, Netflix has had to kick their advertising into overdrive. It is believed that they spent nearly $2 billion in 2018 on advertising alone. Internationally, Netflix expanded more than 20% last year. However, the subscription numbers in the United States have started to slow. This is a continuing trend that the company has seen in recent years, even as they step up their original content.
While restructuring employees is nothing new, especially for Netflix, insiders believe this could be new to the company for an important reason. Netflix is only one of the many streaming services out there, which now includes Hulu, Amazon Prime, Disney+, Apple, and more. It's no longer the wide open road that it used to be, which means that more layoffs may come down the line if this new advertising experience doesn't work out as planned. While original content from these other streamers is inevitable, Netflix has also seen some of their previously streamed property rights, leading to anger from subscribers. Regardless, it looks like it's time for some evolution. The Hollywood Reporter was the first to reveal the Netflix news.