Netflix’s loss of 200,000 subscribers in the first quarter has already put more pressure on a tech sector, but chief technology analyst Mark Mahaney believes the industry’s current weakness offers many opportunities for investors.
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Netflix is laying off about 300 employees across the company.
The cuts, which account for about 3 percent of all employees, come about a month after the streaming company lost about 150 jobs due to the loss of its first subscriber in a decade.
“Today we have sadly laid off about 300 employees,” Netflix said on Thursday. “While we continue to invest heavily in the business, we have made these adjustments so that our costs can grow in line with our slower revenue growth. We are very grateful for everything they have done for Netflix and we are working hard to help in this difficult transition.”
Netflix has warned investors that it will reverse spending growth over the next two years in April.
Spencer Neumann, the company’s chief financial officer, said in an April earnings call that Netflix is trying to be “cautious” to reflect the realities of its business. However, it still plans to invest heavily, including about $ 17 billion in content.
CEO Reed Hastings also said in the call that the company is looking at lower-priced and ad-supported levels with ads aimed at bringing in new subscribers after dealing with platform ads.
Netflix is also working to crack down on password sharing. In addition to the 222 million homes it pays for, more than 100 million homes use its service to share accounts, the company said.
Shares of Netflix were roughly the same in Thursday afternoon trading, but there is a 70% discount so far.
Netflix is laying off 300 more employees as revenue growth slows
Source link Netflix is laying off 300 more employees as revenue growth slows