Quibi Asks Senior Executives to Take 10% Pay Cut
After an underwhelming launch, insiders report that Quibi has asked its senior executives to forfeit 10 percent of their salary, according to the Wall Street Journal.
Among those making the cut is Quibi’s Chief Executive, Meg Whitman. Another insider reported that Quibi is also in talks regarding laying off 10 percent of the company’s 250 employee workforce.
Yet, a Quibi executive spoke on the matter and denied such allegations. A spokeswoman said, “Quibi is in a good financial position. We are not laying off staff as a part of cost saving measures. We just added a dozen new employees.”
Yet, insiders say that some low-level employees have already lost jobs, and that cuts are being targeted at low to middle-level workers. The news may seem shocking to some, as Quibi boasted successful rounds of funding, raising around $1.75 billion from tech companies, movie studios, and individual investors.
The app aimed to provide those “on the go” with quality streaming content packed into short episodes, but with the pandemic forcing many to sit at home, other streaming services have dominated the field.
The app has 4.5 million downloads and 1.6 million subscribers opted into Quibi’s free trial. In more shocking news, Quibi faces a lawsuit from New York-based interactive video company Eko over patent infringement and the theft of trade secrets.
All of the allegations have been denied by Quibi. In the wake of Quibi’s recent troubles, some of the app’s biggest advertisers are planning to renegotiate their contracts with the company.