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CLC

Netflix has laid off around 300 people. They downsized the hubs by almost 100, then all the people they hired for Qwikster another 150+ and then downsized Customer Service by 90. Nice to see they stand by their core values.

bob

Maybe YOU shouldn't have complained about Qwikster and the split. Then all those people would have their jobs.

Nice to see YOU stand by YOUR core values.

Phil

Not really sure how core values relates to having to lay off employees. Should Netflix pay for employees to sit in their desks and not take calls because they are overstaffed?

Account Deleted

Date Calculator

It's really great post.Thanks for sharing it.

rjm

I still wish they would allow us to email customer service.

Some things, I dont WANT to talk to a person over.

Perplexed once again by Netflix

The first person to have gotten the pink slip should have been Hastings for how he royally messed with the brand and caused so many such a headache. Why the investors didn't ask for his head on a plate is puzzling. Now many folks are being layed off not just because of Quikster is no more but because HASTINGS caused so many Netflix users to flee. Why isn't Hastings being held accountable in a big way and shown the door? His staff gets fired for so much less incompetence or no incompetence at all. The investors need to get tough with Hastings and things won't feel back to normal until they replace Hastings since we are all holding our breath as to what will be the next faux pas on his watch.

Interesting news today...Amazon is including free book rentals for Kindle owners to be included in their Amazon Prime subscription. See for yourself:

http://arstechnica.com/gadgets/news/2011/11/amazon-bypasses-library-lends-kindle-books-directly-to-prime-users.ars

I think they need to use those folks in Hillsboro to call up customers who left to solicit their business back again. They can call first and then try emailing. Offer first month free at least.

They can take the salaries from Hastings 46 million he cashed in stocked this summer.

If they are expanding in England and Ireland I don't know why they can't use those folks in Hillsboro to handle the influx of new customer inquiries. Once again it doesn't make sense and I wonder what Hastings is up to.

Is he sore at how this all panned out and now taking it out on employees? Making them the fall guys for the mess he made?

If they didn't have the website secured for Quikster how they hell did they have the employees in place so quick? I doubt it. I think he is laying folks off all due to his botched attempt with Quikster and with so many customers leaving. That is most likely the reality and forget the Netflix marketing spin they are putting to this.

Before they lay one person off at Hillsboro I want to see Hastings walk the plank first out of Netflix. I don't trust him or his close management team. Clean house from the top down first.

Shawn Harstad

How much stock do you own in Netflix? Probably none. You're odd hate for the man that built the company is just rambling. If your not a stock holder you're opinion about who should run the company means little.

White Queen

As a former employee of Netflix, I left before their first lay-off of more than half the Tech department. I saw it coming.

I was there for the disbandment of the Management at the call center, not once but twice. The working conditions went from awesome to sorta okay to horrid.

After I walked away, the team of folks that were my friends were let go and with a week of severance, 2 weeks worth if they had been there 2 years. They also did away with paid vacation and sick time. You can take it, its not paid.

They lost my Netflix business with the price raise and lack of content.

I don't know where it fell apart but they need to figure it out.

Bill Lumberg

I feel it necessary to clarify that subscriber loss is in no way related to lower influx of calls. Netflix inc. Has more subscribers now than prior to changing its plan structure. While market cap is down, subscribers are at an all time high. While planning to departmentalize its business, Netflix increased staffing to accommodate a secondary source of calls. The cancellation of qwikster and Netflix goal of maintaining cutting edge customer service is the only factor in its decision to let go customer service agents.

Perplexed once again by Netflix

@shawn Wrong a runny my friend. Hundreds of thousands of customers left Netflix and voted by walking on how they don't like the way Netflix changed course. They certainly had an opinion and rightfully so. They didn't like the way management handled it all. Not the call centers. So what came first the leaving of the customers or the stocks dropping? The customers leaving and then the stock reacted and the investors got peeved.

@ White Queen thanks for explaining how bad things are getting in the lower ranks at Netflix. Good management avoids layoffs and charts a careful course so they protect their employees from such poor employer practices. I have liked Netflix customer service but now I am going to have to watch out for not so great service from a group that is treated like second class employees. Do you think management has no paid vacations or sick time? I doubt it. Hastings is on a paid vacation promoting Netflix in England and Ireland.

@ Bill what the heck are you talking about? They lost like 800k customers. That does impact incoming calls. They also turned off new potential customers from even calling them since it was so messed up. I call any organization that takes away paid sick time a sweat shop. No paid vacation time either? I seriously doubt they were that ahead of the game on hiring for Quikster since they didn't have the software or website ready to go. So they hired hundreds of extra employees to just sit for a month or two waiting for the change. That I doubt. So if they just need to cut the staff....why then did they need to take away paid sick leave from everyone????? Why did they need to take away a yearly paid vacation????? Because Hastings messed up big time and he really needs to be shown the door. No golden parachute either.

rjm

They got it right by firing "Perplexed once again by Netflix"

They messed up in hiring him to begin with.

Superman

You are clearly perplexed by reality. Scaling back customer service is a direct result of Netflix keeping its business model the same. When creating a second business, you have to staff for a second volume of calls. It's obvious these concepts are too complicated for you to understand, and you have my sympathies. Letting a bunch of temp agency trainees go has nothing to do with Netflix values. It's cost optimization, just like any other company in the real world. Do you really think Netflix is going to pay people to sit and do nothing? That's what unemployment is for. When you quote facts that contradict your opinions you sound about as smart as a corn husk. Go back to your coors light and your tractor

Cookie

My fiance was one of the members of the training class that was laid off. They know LONG before he was hired that the Qwikster/Netflix split was a no-go.

Booster

What do you mean that your fiancé says that it was a no-go? Did Netflix plan for it to fail?

What?

It is easy to see why they didn't need as many call center employees. They deal with calls so much more efficiently now that their standard script is:

"We don't know why your queue/website/streaming is down. It's not us. Call your ISP/device manufacturer. It must be their fault." -click-

Switching from real customer service to the above brought their average call time to a fraction of what it once was, hence they can afford to lay off employees and save that money to cover Reed's next brilliant move.

Lokochon

stop bitching about Hasting and get a life fools!!!! The man had a great idea and built a great business with outstanding customer service. ALL YOU HATTERS CANT CHANGE THAT!!!!!!

Perplexed once again by Netflix

@rjm I am a older female who has never worked for Netflix. Sorry try again.

@Cookie sorry to hear about your fiance's layoff. It was clear to eveyone except Hastings and his team that this was a really bad idea. Now staff is taking a hit to offset the cost of this colossal mistake.

@Booster Only Hastings thought it was a good idea.

@ What? I think you bring up a great point here. You can make any stats work for whatever point you want to make. I haven't called Netflix recently but in the past it has been very good. I guess it is subpar now and thanks once again to Hastings it took a good idea and let his ego make these decisions and it missed the mark in a big way. I think I along with others will keep their eyes out for others to take full advantage of Hastings miss steps this year. Amazon, Blockbuster and ? Customer loyalty is very powerful and when you mess with customers like he has AND continues to do so with the lame customer service that loyalty is just going to go to the way side. Things are not ok now and the investors need to understand that. I think Hastings got out of Dodge and headed to England and Ireland for relief from all the negativity he was getting in the U.S. Not only is he sleazy but he is also a coward.

@ Lokochon It is possible to have a life but hate what Hastings has done to a decent product. He HAD outstanding customer service but is now laying them off to make up for all the revenue losses due to his mistakes. You can live in the past but I am someone who is living in the present and what is going down now and what I see is very upsetting. Certainly for those employees that are getting their sick leave cut along with vacation or losing their entire job. Hastings really has not been held accountable for this. If he were he would have been forced to resign by now. I hate when top level execs are like teflon and their bad deeds never stick to them. He did it and he must go. Some of his first lieutenants need to go to make sure the old guard is gone for good.

WakkaWakka

"all temp employees that did not have required stats."

I'm assuming that means that they sucked at their job? If that's the case, good. Anyone who does a bad job at their job should be fired. Do you want customer service from someone who is great at their job or terrible? I'll take the one who is great every time.

Or am I misunderstanding what they mean by stats.

@ White Queen:
"with a week of severance, 2 weeks worth if they had been there 2 years. They also did away with paid vacation and sick time. You can take it, its not paid."

Were those temp positions that you are talking about? If so, severance is pretty damn nice of them... and if they were getting paid before for vacation and sick time, again, that was pretty nice of them. Every temp job I've ever had, you don't get paid for sick or vacation time and you don't get a severance when laid off.

Hungry Walrus

80% of the lay offs were temps. The other 20% were the worst employees in the center. Netflix is a business, not a soup kitchen. The temp employees will be re-assigned by their temp agency. C'est La Vie.

I think hating on anything Netflix is the new skinny jeans + messenger bag.

+5 hipster points if you can think of something more trivial to complain about.

Whenever they raise the price of gas 10 cents thats 2 years worth of Netflix annually. Pull your heads out of your asses and start complaining about something worth-while.

Cookie

@Booster: Netflix sent out the announcement that the Qwikster/Netflix split was not going to take place after all about a week and a half before my fiance even applied to work there. They knew full well when hiring both his training class and the other one that was let go that Qwikster was no longer going to exist.

quilts

Great article!Thanks for posting.

Bringer of Logic

@Cookie your fiance was not an employee of Netflix, Temps are Temps. Now he can get a real job to pay for your Pabst and cans of chili.

Perplexed once again by Netflix

@Cookie thanks for clearing up the the time line on the firings. Quikster and layoffs didn't go hand in hand. It is clear that the layoffs were the result of all the customers who left, 800K, and the reality of revenue losses from all of that.

It really begs the question then WHY did they hire them in the first place? It really is unbelievable how poorly this company is run now. It is like they have lost their friggin minds and it just continues.

When will the investors cut their losses and find a better management team to get them out of this mess. Why are they waiting for Hastings to drop the next shoe? I don't think the investors know all the miss steps that have occurred and more ex employees need to step forward and start posting here. Looking at spread sheets is one way to assess the health of a business but also looking at what is causing so many headaches for the consumer should be given equal weight.

Some of the comments here are just rude as heck here and Cookie don't take it personally here. I appreciate your comments.

So what else has the Netflix management team been up to besides cutting the stock worth to $77.00? That alone should be enough to give Hastings and his lieutenants their pink slips. How far does he have to take the company down before the investors take action? Bankruptcy?

The stock was 300.00 a share now it is only 77.00 and now it has very little wiggle room to plummet to the point where it is worth very little. The breathing room is gone.

So he thinks Ireland and England will be his salvation? I think he has tried to divert attention away from the mess and it just doesn't fly with consumers.

I now can see why he cashed out 46 million in stocks this summer at the height of the stock price. It does smack of insider trading to me. If I was an investor I would be pretty upset that he hits me up for money and then takes the cash out the back door just before he tries to stick it to the consumers and takes a big gamble that didn't pay off.

Is he buying up the stock? Not sure what is going on with Hastings but I don't like it and don't trust him or his spin doctor team.

Bringer of Logic

You are still blind to reality. 800k left, almost 2 million joined. Less than 3% of Netflix customers call customer service since the entirety of the service can be managed online. The layoffs are because they don't need departmentalized customer service. It's entirely because of Qwikster and has NOTHING to do with the trivial group of whiners that quit over what amounts to less than the sales tax on a cable bill. Pull your head out of your ass.

Perplexed once again by Netflix

@Bringer of Logic so how do you explain the drop in stock? Why lose 800K at all? Stupid really. Now they had to back track. Have you been paying attention at all to the comments here and the timing of the layoffs? No. Well the trivial group was actually quite big and if it was so trivial why then did they decide it was not a good time for Quikster after all the complaints? If it were so trivial why the huge drop in stock price? Must not have been as trivial as you think it was. But those wall street whiners just couldn't keep those stock prices up. Are you gonna blame them too for whining too much? Is that your response to anyone who is upset with the major mess up here? You all are whiners? Sheesh.

It sounds like they also didn't want to treat employees well anymore with no paid sick leave and vacations. They also have the automated crappy responses for customers now which they didn't have before when I used to call before all of this mess. No they have down scaled to cut back on expenses on the backs of the staff for Hastings poor judgement. Guys like you are soooo typical telling folks to take their head of out their ass is sooooo passe. Try some logic Brninger of Logic. Do you kick dogs too? Did you even listen to what cookie told you. Then layoffs happened after they announced the end of Quikster. So they decided to ramp thing up to just turn around like weeks later to say sorry we actually don't need you now because of why? It is more than coincidental that happened right after they realized how many customers they lost and the admit the loses were much bigger than fore casted thus the change of heart on the whole mess. Sorry we knew it would piss some of you whiners off but well we didn't realize it would be so many of you and now we are sorry and have changed our minds on this? Bye bye and now Hastings has left for Ireland and England to change the subject and let his hench men lay off hundreds to offset the revenue losses. Yeah 2012 will be losses but hey I guess in order to cover the cost of expanding now they have to cut staff since revenues down considerably. Plus the numbers are fore casted to plummet even more! Yeah they even admitted to it so the ride is far from over. I think a coupe at Netflix is in order while Hastings has gone fishing in the UK.

Jon

@Bringer of B.S.. Netflix did not gain almost 2 million subscribers in the 3rd quarter. Specific numbers on how many subscribers NF has can be viewed on their web site (Investors page). NF gained a wopping 5 million U.S. subscribers the first half of this year. That is an average of 2.5 million per quarter. NF lost a NET of 800,000 customers in the 3rd quarter. If I were a stockholder that would be worrisome.

There are still millions of NF customers that did not cancel but are not happy with NF disrespecting (not listening) them. Simply put, NF reputation is now damaged and that will affect NF profits for some time.

Quit whining about people whining you hypocrite.

Lokochon

Perplexed once again by Netflix @ HP,AMAZON,THE US POSTAL SERVICE, US GOVERNMENT, FEDEX, BARNS AND NOBLE, AND THE LIST GOES ON !!!!! ALL OF THIS EMPLOYERS HAVE LAID OFF THOUSANDS OF JOBS > NOW GO AND WRITE ABOUT ALL OF THE COMPANIES THAT ARE LAYING OFF EMPLOYEES AND STOP HATINGON NETFLIX !!! HASTING TOOK HOLLYWOOD BY THE BALLS AND MADE IT POSSIBLE FOR MILLIONS OF PEOPLE TOWATCH TVSHOWS AND MOVIES FOR AS LITTLE AS 7.99 PER MONTH!!! DID YOU HEAR THAT $7.99 PER MONTH. NOMORE LATE FEES !!! DID YOU HEAR THAT NOMORE LATE FEES. YOU HAVE TO GIVE THE MAN SOME PROPS. YOU STUPID CRYBABY !!!!!

rjm

Perplexed once again by Netflix

I think I have the solution to your problem.

Shoot yourself in the head with a loaded gun.

BoB

Yes, it's like Russian roulette with bullets in all six chambers!!!

Stop it Netflix! Give us back the great movie service you pioneered!

Perplexed once again at Netflix

@Lokochon odd bunch you decide to compare to Netflix. The U.S. Postal Service? That is like apples to what a watermelon? Netflix didn't need to lose 800K customers which is what caused the layoffs. They pissed folks off deliberately. Many start ups are run by the founder but many times they don't have the skill set to take to the next level. Hastings has proved that. Remember he was a producer if you can believe that or not. That skill set got him so far but when it came to expanding he just did a knee jerk 60% increase and split the company in half. He figured that customers would have to just suck it up and take it. They decided differently. He also is now doing the same thing to his employees. His approach may have worked in the beginning but it is much too blunt and thoughtless when you have millions of customers paying close attention. His timing is just clueless on top of it all.

Yes he did bring it into the world but he doesn't own it out right he sold that right when he took on investors and stockholders. He is accountable to them which must just drive him nuts. I wonder if he passed the price hike and spitting with the company with the stockholder and investors prior to doing it? Or did he just push his agenda through and ask questions later? My guess is the later is true.


OMG you called me a crybaby? God I haven't heard that one in about 4 or 5 decades. Can you be just a tad more current? It is hard to argue with play ground name calling.

@ rjm I think you need to keep your solutions to your sick self since no one is asking for them. You and Lokochon have much in common.

@ Bob I too want the great movie service back again. I feel for those who came to work for Netflix and needed the work and then found out they didn't have a clue as to what they were doing and end up with pink slip or no sick leave or vacation time right before the holidays. Good management looks out for their employees and avoids stupid mistakes like what Hastings did these past few months. I don't see Hastings making up the difference he has cost the company or the employees. The small guy or gal in customer service and elsewhere in Netflix pays the price and they aren't making much as it is so it must really be a hardship on them.

I have a New Years resolution, retire Hastings and his lieutenants.

Can't do it.

I'm always very amused by those calling for Hastings to be fired. Yeah sure he is the CEO, but the thing most forget is he is also the founder AND the owner. Can't fire the owner.

Perplexed once again at Netflix

@Can't do it. He doesn't own it. There are stockholders/investors. Have you heard about the stock dropping at all from 300 a share to 77? But who knows maybe with cashing out the stock this summer when the price was much higher he can now buy two to three times the stock now since it dropped so much. Is he the major stock holder?

I do think he dumped the stock just before it dropped this summer and I have to say it looks like insider trading. He knew he was going to up the price in a big way and also split the company and he had to have known or anything with a brain besides a cabbage would have suspected that was not going to go over well with consumers. He knew the risks and decided to cash out before he implemented them. Being the founder means nothing if you sold shares to everyone. Being the CEO also means nothing if others own in shares. He is not the sole owner by any means. Maybe some have bought stock at the lower price to push their agenda in the future and is that such a good idea if I was Hastings who is control freak. Corporate take overs is common place. He maybe sore about the whole thing with customers in up roar over his mishandling of the company. Maybe he would love a corporate take over and leave with a mega golden parachute?

C

Should the CEO step down... or should he not?! Will Netflix fail.. or will it not?! Who cares!

Yes, Netflix has made a lot of stupid changes to their site & services.. even before the sudden price increase & the qwickster fiasco. But at the end of the day it's a dvd rental and streaming company. They stream movies and rent DVDs, people! Find a bigger battle! Live a bigger dream! It's time to move on. Keep the drama in your queue!

What?

New Customer Service at Netflix:

RECORDING: "We're sorry. No one is here to take your call right now.

If you are having problems with streaming, press 1 to be connected to your ISP, or press 2 to be connected to Roku.

If you are having problems with your DVD queue or delivery, press 3 to switch to streaming only.

If you are an investor, please note that we have no idea if...uh, I mean when...Reed Hastings will be returning to the US. Please press 4 to listen to some soft, calming music.

For all other calls, it's probably your fault, so press 5 to disconnect."

rjm

Perplexed IS Foaming at the mouth like a rapid dog.

The stock decline is not relevant. His long term performance beats the pants out of the market averages.

And the stock highs were unrelated to the companys prospects & real value.

Sounds like Hastings wouldnt go out with you and you have a grudge.

Get over it already & move on.

You should be banned from posting here.

Perplexed once again at Netflix

@C I think you bring up an excellent point. Most people will not want the drama of it all. Once they use the lame customer service it will drive home the point is this worth the hassle. I think it will turn folks off and they will not bother to agitate for a better product with Netflix. It will seem pointless to continue to do so. Hey 800K left and had enough. I do agitate for better for Netflix but weary of it all. I am checking out other alternatives as I write this and have my eyes out for what entities will step out with a killer deal. I will not hesitate at all jumping ship. I like to keep the drama in my q as well but Netflix makes it much more of a hassle in the passing months and continues to screw up. I think it is good to saw so rather than just roll over after investing so much time in my ratings and qs. Yeah they are going to hear it from me about this and I hate execs who push consumers around and employees around and pocket millions in their own pockets in the process.

@ What? Excellent!

I am not foaming at the mouth and Yawn it is rjm with his play ground antics. Eweee Hastings is not my type, anyone who lies and deceives is just not my type not to mention that aqua shirt. He can afford a stylist or image consultant and choses not to. Big mistake. Besides I am married and don't need to feel any grudge what so ever. So you decide what opinions should be posted here? The one with play ground name calling? Hey pot this is the kettle and you need to realize there are other points of view here and maybe you should just hang out at Netflix site where every thing is just fine and dandy.

zed

"Netflix's main call center in Hillsboro just laid off over 90 employees. This included a training class cancelled in it's second week and all temp employees that did not have required stats. They have also halted any other hiring for the first time in over a year. Management has explained it as they hired a lot of people to cover the internal Qwikster/Netflix split in the call center. Once that didn't happen, and the call volume dropped drastically with the loss of subscribers, the call center had too many employees. "

Please include your source on your quoted material. Thank you.

Galagatron

Netflix didn't split off into Qwikster and is still the way it was, so basically everyone is getting stuff streamed and or mailed, right? What's the point in continuing to complain about that aspect, or the price of stocks or what the shareholders are doing, or who gets fired or hired? Sure it's not a perfect company and can use some changes but that screw-up is over. I still get my 2-out-at-a-time and the occasional third, so whatever.

Anonymouse

I keep seeing posts, like Perplexed once again by Netflix, which claim that Reed Hastings dropped a bunch of stock in Netflix and that he knew it was going to drop. I've tried a few times to look up that info, and all I end up finding is that he sells 5000 shares every week (which is less than he used to sell per week, which was 10000), and has done so for years.

Here is one of the links that I found:
http://www.gurufocus.com/InsiderBuy.php?position=&insider=HASTINGS+REED&p=1

Where does the info come from that he sold a bunch of stock at the start of summer?

Perplexed once again by Netflix

@ anonymouse apparently he cashed out about 1.8 million shares for 46 million in stock this summer. Just google "Hastings, stock, Netflix" and you will pull up all sorts of links.

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