Netflix, Inc. (NFLX) said on Tuesday that 150 staff will be laid off throughout the organization. Liquidated roles account for fewer than 2% of Streams’ 11,000 employees, with the majority of the layoffs taking place in the United States.
The projected layoff comes less than a month after NFLX announced its first subscriber drop in a decade, with further losses predicted in the coming quarter.
NFLX expects to lose 2 million paying members globally in the second quarter. Netflix, Inc. (NFLX) has lost 68.4 percent of its value since the beginning of 2022.
Netflix co-CEO Reed Hastings stated in a financial report last month that after years of fighting commercials on its streaming service, the company is now “open” to giving cheaper ad packages to entice new users.
NFLX is also striving to eliminate uncontrolled password sharing, stating that over 100 million people utilize shared accounts in addition to the 222 million paid subscribers. While the layoffs at Netflix, Inc. (NFLX) are connected to a drop in subscriber numbers, they are part of a larger job decrease in the IT sector.
NFLX is down -60.81 percent over the last year and up 7.26 percent over the last week in terms of performance. The stock price index is down 43.60 percent in one month and 53.23 percent in three months. In the last six months, it has returned -71.95 percent.
Several Wall Street analysts have lately been intrigued by the NFLX stock, with Wedbush upgrading it from a Neutral to an “Outperform.” The analysts issued their opinion in a research note on May 16, 2022. In a report issued on April 21, 2022, DZ Bank analysts reiterated their previous view on Netflix Inc. shares, ranking them “a Hold.”