BUZZ — Netflix cuts most jobs since 2022, shares dip
* Netflix shares down 1% to $69.77 on Weds after co said it's laying off 6% of its workforce, or about 1,000 employees, according to an internal memo seen by Reuters * The largest job cuts since 2022 come as the streaming giant faces tough competition for viewers from legacy rivals and free platforms like YouTube * Analysts have noted NFLX's struggle to find new major revenue streams beyond its subscription business, which may be approaching a ceiling * NFLX Co-CEOs Greg Peters and Ted Sarandos said in an email to employees that the co remains on track to deliver its full-year forecast * In July, NFLX said for FY26 it expected revenue of $51.0-$51.4 bln, ads revenue of $3 bln, and continued to see operating margin of 31.5% * NFLX is slated to report Q3 earnings on Tues, Oct 20, after market close * Stock recently at 19x expected earnings, well below its five-year avg of 31, per LSEG data * With the decline, shares down ~26% YTD and ~43% over the past 12 months (Lance Tupper is a Reuters market analyst. The views expressed are his own) ((lance.tupper@tr.com; 1-646-279-6380)
* Netflix shares down 1% to $69.77 on Weds after co said it's laying off 6% of its workforce, or about 1,000 employees, according to an internal memo seen by Reuters * The largest job cuts since 2022 come as the streaming giant faces tough competition for viewers from legacy rivals and free platforms like YouTube * Analysts have noted NFLX's struggle to find new major revenue streams beyond its subscription business, which may be approaching a ceiling * NFLX Co-CEOs Greg Peters and Ted Sarandos said in an email to employees that the co remains on track to deliver its full-year forecast * In July, NFLX said for FY26 it expected revenue of $51.0-$51.4 bln, ads revenue of $3 bln, and continued to see operating margin of 31.5% * NFLX is slated to report Q3 earnings on Tues, Oct 20, after market close * Stock recently at 19x expected earnings, well below its five-year avg of 31, per LSEG data * With the decline, shares down ~26% YTD and ~43% over the past 12 months (Lance Tupper is a Reuters market analyst.
The views expressed are his own) ((lance.tupper@tr.com; 1-646-279-6380)