Netflix’s revelation that it lost 200,000 subscribers in the first quarter put further pressure on the already battered tech sector, but top tech analyst Mark Mahaney believes the sector’s current weakness presents several opportunities for investors.
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Netflix is laying off around 300 more employees across the company.
The cuts, which account for about 3% of total employment, come about a month after the streaming company cut about 150 jobs in the wake of its first subscriber loss in a decade.
“Today, unfortunately, we laid off around 300 employees,” Netflix said in a statement Thursday. “While we continue to invest significantly in the business, we have made these adjustments to allow our costs to grow in line with our slower revenue growth. We’re so grateful for everything they’ve done for Netflix and are working hard to support them through this difficult time in transition. “
Netflix warned investors in April that it would scale back some of its spending growth over the next two years.
Spencer Neumann, the company’s chief financial officer, said during the company’s earnings call in April that Netflix is trying to be “cautious” about pulling back to reflect the realities of its business. However, it still plans to invest heavily, including around $17 billion in content.
Co-CEO Reed Hastings also said during the call that the company is looking for lower-priced, ad-supported tiers to attract new subscribers after years of fighting back on the platform from advertising.
Netflix is also working on tackling the rampant sharing of passwords. In addition to its 222 million paying households, more than 100 million households use its service through account sharing, the company said.
Netflix shares were roughly even in Thursday afternoon trade but are down more than 70% year-to-date.