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As it implements more efficient processes to cope with massive subscriber growth, Netflix is reducing its part-time workforce in two California distribution centers. The company’s Los Gatos center—its largest—will be cutting 125 workers, and its Fremont center will eliminate 160 jobs.
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Netflix spokesperson Steve Swasey confirmed the layoffs to Home Media Magazine, calling the installation of the company’s new, customized processing machines “a reflection of ongoing growth.” The automatic processing machines reduce or eliminate the need for manual handing of the hundreds of thousands of DVDs that pass through the centers each day.

As demonstrated by Redbox earlier this year, even employees at successful, growing companies are not immune to having their positions eliminated in the name of efficiency and cost-savings. Between the Redbox and Netflix layoffs and the closures of thousands of Hollywood Video, Movie Gallery and Blockbuster Video locations, 2010 has not been a kind year to workers in the home video business. How many more pink slips will be delivered before year’s end?
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(via Home Media Magazine)

11 Responses to “Netflix Cuts 285 Jobs at Distribution Centers”

  1. Member [Join Now]

    I assume that Netflix isn’t hiring? ;)

  2. Visitor [Join Now]
    The Situation [visitor]

    I’ll make a comment related to the article here. The question I have is whats less acceptable, Redbox giving their jobs away by outsourcing to another country or Netflix taking jobs away and giving them to machines?

    My heart goes out to all those people in California, I’ve never been there but I heard it’s expensive enough, let alone when you just lost your job at what you thought was a secure company.

  3. Visitor [Join Now]
    will [visitor]

    Netflix has to cut costs wherever it can in order to prepare for higher mailing costs. Streaming, with its considerable advantage of instantaneous delivery, is playing an ever-larger role at Netflix; it’s quite reasonable to expect that trend to continue, so more employees at its distribution centers will become redundant over time. Certain distribution centers will probably close altogether as streaming overtakes their by-mail service.

    • Member [Join Now]

      I hate to say this but I will have to say you probably hit the nail on the head. I know a lot of people that have Netflix and they might get a few movies on DVD each month, but use the Streaming service nonstop. So looking at Netflix they have to change their way of doing business as the business changes.

  4. Visitor [Join Now]
    anonymous [visitor]

    i was one of the affected people laid off by redbox approximately two months ago. i am still jobless. this breaks my heart to hear that more people are out of jobs at a successful company. when will the layoffs stop and when will all of the affected people with families to support find jobs?

  5. Member [Join Now]
    The Dude [cancun]

    Keep it classy Netflix.

    When companies are doing well and still decide to cut labor it’s annoying. Companies get what they deserve as loyalty is almost something of the past.

  6. Visitor [Join Now]
    Aaron [visitor]

    It could be the area doesn’t have enough subscribers and it would be just as efficient to piggyback the subscribers off of the closest distribution center, other than the one they are closing. But if they are making so much money why not just let it stay open so it is sad but big corporations only see with dollar signs.

  7. Visitor [Join Now]
    Ken [visitor]

    I dont have netflix or any online service, but they are not 1080P, right? Tell me when Online able to stream at Gigabit speed with Bluray Quality not DVD Quality.

  8. Visitor [Join Now]
    Aaron [visitor]

    I know its called profits but the subscribers from that area will probably see a slight delay I know I said it could be just as efficient but how could it if the orders have to reroute to a different center. But why shut down the center if the subscriber rate is up, they may need it more than they think in the future. But then again a lot of people use only the streaming part and rarely the dvd part.

  9. Visitor [Join Now]
    Aaron [visitor]

    Ok so I didn’t read the whole article I was wrong about them shutting down the center, its a new automated process that is making the jobs be cut. Now I just wonder if there is a way to delete my other posts, because they make me look bad now.