Netflix’s report that the company lost 200,000 subscribers in the first quarter has put additional pressure on an already beleaguered tech sector, but lead tech analyst Mark Mahaney believes the sector’s current weakness presents several opportunities for investors.
Aaronp/Bauer-Griffin | GC images | Getty Images
Netflix is laying off about 150 employees across the company, CNBC confirmed on Tuesday.
Liquidated positions represent less than 2% of streamers’ 11,000 employees, with most of the layoffs occurring in the US.
“As we explained in relation to earnings, the slowdown in our revenue growth means that we also have to slow down the growth of our costs as a company,” a company spokesman told CNBC. “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 performance, which makes them particularly challenging as none of us want to say goodbye to such great colleagues. We are working hard to support them through this very difficult transition.”
The expected staff cut comes less than a month after Netflix reported its first loss of subscribers in a decade and is forecasting future losses in the next quarter. The company’s shares have fallen more than 70% since January.
During the company’s earnings call last month, co-CEO Reed Hastings said the company was exploring cheaper ad-supported tiers to bring in new subscribers after years of resistance to ads on the platform.
Netflix is also working to combat rampant password sharing, noting that in addition to the 222 million households that pay, there are over 100 million households using account sharing.
The Netflix layoffs, while linked to a slowdown in subscriber numbers, are part of a wider job cut in the tech industry. Several tech companies have recently announced hiring freezes and layoffs, including Facebook’s parent company Meta, Amazon, Uber and Robinhood.