Netflix Fires 150 'Woke' Staff as Stock Value Plunges
Bloodbath at streaming platform continues as hedge funds dump shares
Netflix has just fired around 150 of its "woke" staff members as the steaming platform's stock value continues to plunge.
The left-wing streamer is laying off employees as part of its ongoing efforts to cut spending as catastrophic subscriber forecasts spell doom for the months ahead.
The news comes as several hedge funds reportedly dumped Netflix shares ahead of the company’s recent first-quarter earnings report.
The moves signal a broader lack of confidence from Wall Street than previously known.
Netflix booted around 150 employees on Tuesday, largely based in the U.S.
A significant portion of the axed staff is in creative positions, both in film and TV, according to a report from Deadline.
"Our slowing revenue growth means we are also having to slow our cost growth as a company,” a Netflix spokesperson said in a statement to Deadline.
"So sadly, we are letting around 150 employees go today, mostly US-based.
"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.
"We’re working hard to support them through this very difficult transition.”
Netflix recently laid off staff in its animation department as well as its in-house fan site Tudum.
The cost-cutting follows Netflix’s disastrous first-quarter report showing the streamer lost 200,000 subscribers.
The company also expects to lose a stunning 2 million more in the months ahead.
Shares of Netflix plummeted nearly 40 percent following the news.
For the year, Netflix’s stock is down a whopping 68 percent.
Several hedge funds dumped their Netflix holdings prior to the earnings announcement, suggesting widespread pessimism toward the company on Wall Street, according to multiple reports.
Funds including Tiger Global Management, Winslow Capital Management, and Scopus Asset Management sold off the entirety of their Netflix shares.
Hedge fund billionaire Bill Ackman recently dumped the 3.1 million shares of Netflix that his fund purchased just a few months ago, taking a huge loss.
Ackman says he has lost confidence in the ability to predict the streamer’s future prospects.
Adding to its problems, Netflix is now facing a shareholder lawsuit accusing executives of misleading the public about the company’s subscriber growth.