Netflix Cuts 6% of Staff, Narrows 2026 Outlook as Churn Spikes
NFLX is trading near its 52-week low of $65.08 (8.6% above the low).
Summary
Netflix is cutting about 1,000 jobs (6% of workforce) and narrowing its 2026 revenue outlook to $51.0–$51.4B, down from prior guidance of $51B–$51.4B. Q3 U.S. churn jumped 16.6% YoY and 8.5% QoQ, the largest quarterly increase on record. Q3 revenue came in at $12.86B with EPS of $0.82. Huber Research downgraded the stock to Underweight with a $70 price target, citing weak engagement and the job cuts. This follows the layoff announcement on Oct 14 and the restructuring report on Oct 9. The company is shifting to annual viewership reporting from 2027 and increasing content spending by ~10% this year.
At the time of this announcement, NFLX was trading at $70.69 on NASDAQ in the Technology sector, with a market capitalization of approximately $293.8B. The 52-week trading range was $65.08 to $124.86. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Wiseek News.