Netflix Bloodbath Continues: around 150 Laid Off as Hedge Funds Dump Stock
These changes are driven primarily by business performance rather than individual performance. This makes them particularly difficult as we don’t want to say goodbye to so many of our great colleagues. We are working hard to support them during this difficult transition.
Netflix recently laid off staff in its animated department and its in-house fan website Tudum.
This cost reduction follows Netflix’s first-quarter report that showed it lost 200,000 subscribers. The streamer expects to lose another 2 million subscribers in the coming months. Netflix shares plunged nearly 40% following the news.
Netflix stock has dropped a staggering 68 percent over the past year.
Multiple reports have indicated that several hedge funds sold their Netflix holdings before the earnings announcement. This suggests widespread pessimism on Wall Street.
Funds such as Tiger Global Management, Winslow Capital Management and Scopus Asset Management all sold their entire Netflix shares.
According to Breitbart News, Bill Ackman, a billionaire hedge fund investor, recently sold 3.1 million shares in Netflix. He said that he is unable to predict the future and has decided to dump the shares.
Netflix now faces a shareholder lawsuit alleging that executives deceived the public about its subscriber growth.
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