Economic turmoil hits media and tech companies

After two years of booming tech and media business, industries are now facing a wave of cost-cutting measures such as layoffs and shutdowns that signal a focus on profitability but could damage corporate reputations. to potential employees in an already tight labor market. The market may be pushing companies to cut costs, but employer-employee relations are no longer an internal matter and play a role both in a company’s ability to attract top talent and in its image with the audience.

At Netflix, recent layoffs have caused backlash

netflixThe latest round of layoffs has drawn 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 the first quarter, per variety.

The layoffs represent 2% of Netflix’s total workforce and included about 26 employees recently hired to work on the company’s behind-the-scenes blogging initiative. tudum. Several other project workers were laid off last month.

The company’s internal affairs now exist in the public sphere: several tweets about Netflix layoffs have gone viral online. Many of those fired from Tudum were gay or non-white employees, prompting jokes and accusations of discrimination.

Meanwhile, some tech companies are desperate to prevent quits

In a plan to retain talent and compete Amazon, Microsoft promised to increase employee compensation. Company executives have announced plans to “nearly double” its employee compensation budget and increase equity compensation for some early and mid-career employees by at least 25%, according to Bloomberg.

Given reports of layoffs and hiring freezes at other big tech companies, as well as the industry’s stock market crash, Microsoft’s planned salary increases could give it an edge over the industry.

Amid the turbulence, there are opportunities in technology and media

As people see more options beyond being sequestered in couch streaming videos, the tech industry has more opportunities to evolve to meet changing demand.

Although forced to rein in extravagant growth, Big Tech companies have ample reserves of cash that they could use to focus on R&D for next-generation technologies.

Although employees of companies like Apple may now have less leverage, a more mobile tech workforce may continue to fuel startup growth.