5 reasons Netflix is struggling as it cuts about 1,000 staffers
Source: Business Insider ·
Netflix's stock has fallen after slower engagement growth and stiff competition from YouTube. Here's why Wall Street is upset.
From the source
Netflix co-CEO Ted Sarandos is looking to kickstart growth at the streaming giant.Patrick T. Fallon / AFP via Getty Images; Jakub Porzycki/NurPhoto via Getty ImagesNetflix shares have struggled amid slower engagement growth and intensifying competition.The paid streaming leader laid off about 1,000 on Wednesday, its biggest round of cuts in years.Here are reasons Wall Street is uneasy about Netflix's outlook.Netflix is in a slump — and it's not just because you can't find a hot new show to watch.The streaming titan's shares are down 42% in the last 12 months and have been nearly cut in half from their all-time high last summer. Netflix had its biggest round of layoffs in four years on Wednesday, cutting about 1,000 employees, roughly 6% of the company.So, what's going wrong?Netflix's viewership growth has slowed as free competitors like YouTube gain momentum, and initiatives like games and podcasts have yet to become breakout hits. Add in the company's surprise bid for Warner Bros.,…