Netflix’s revelation that it lost 200,000 subscribers in the first quarter put additional pressure on the already besieged technology sector, but leading technology analyst Mark Maheni believes the current weakness in the sector presents several opportunities for investors.
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Netflix is laying off about 150 employees across the company, CNBC confirmed on Tuesday.
Elimination positions account for less than 2% of the streamer’s 11,000 employees, with most redundancies occurring in the United States.
“As we explained in terms of revenue, our slowdown in revenue growth means we also need to slow down cost growth as a company,” a CNBC spokesman said. “Unfortunately, today we are laying off about 150 employees, mostly from the United States. These changes are primarily driven by business needs rather than individual productivity, which makes them particularly tough because none of us want to say goodbye to such great colleagues. We are.” We are working hard to support them in this very difficult transition. “
The expected staff cuts came less than a month after Netflix reported its first loss of subscribers in a decade and forecast losses in the future next quarter. Shares of the company have fallen nearly 70% since January.
During the company’s earnings last month, co-CEO Reed Hastings said the company was exploring lower prices supported by advertising, in an attempt to attract new subscribers after years of resistance to advertising on the platform.
Netflix is also working to end widespread password exchanges, noting that in addition to the 222 million paying families, there are more than 100 million additional families through account sharing.
The dismissal of Netflix, although due to a slowdown in subscribers, is part of a larger job cut in the technology industry. Several technology companies have recently announced freezes and layoffs, including parent company Facebook Meta, Amazon, Uber and Robinhood.