Netflix Inc (NFLX) said earlier this week it had laid off nearly 150 employees, mostly in the United States, as it struggles with decelerating growth.
The layoffs account for nearly 2% of Netflix’s workforce in the United States and Canada, it said.
The streaming service company reported its first loss of subscribers in over 10 years during the latest quarter and projected even more considerable losses in the upcoming quarter.
“These changes are primarily driven by business needs rather than individual performance, which makes them especially tough as none of us want to say goodbye to such great colleagues,” Netflix Inc said in a statement.
“We’re working hard to support them through this very difficult transition.”
Netflix shares closed lower for the sixth time in the past ten trading sessions on NASDAQ on Wednesday. It has also been the steepest single-session loss since May 5th. The stock went down 7.02% ($13.37) to $177.19, after touching an intraday low at $176.27. The latter has been a price level not seen since May 13th ($176.01).
Shares of Netflix Inc have retreated 70.59% so far in 2022 compared with a 17.68% loss for the benchmark index, S&P 500 (SPX).
In 2021, Netflix Inc’s stock went up 11.41%, thus, it again underperformed the S&P 500, which registered a 26.89% gain.
Analyst stock price forecast and recommendation
According to TipRanks, at least 28 out of 39 surveyed investment analysts had rated Netflix Inc’s stock as “Hold”, while 8 – as “Buy”. The median price target on the stock stands at $299.93.
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