Netflix, Inc. (NASDAQ:NFLX) stock traded relatively flat on Thursday amid reports of workforce changes within its global product team.
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The reported move reflects internal restructuring as the streaming company adjusts leadership responsibilities and team structures.
Benzinga has requested Netflix for their comments on the story and will update once we get a response.
Workforce Changes
Netflix recently eliminated several dozen positions within its global product team as part of an internal reorganization, Variety reports. The affected group primarily supported marketing design, promotional assets, and creative materials tied to content and product launches.
People familiar with the situation told Variety that the cuts targeted the company’s “creative studio unit”.
That team produces promotional materials such as posters, trailers inside the platform, and visuals used in live experiences.
However, the reductions did not stem from employee performance, Variety adds, referring to some sources with knowledge of the matter. Some workers lost positions, while others moved into different roles within the organization.
Financial Context
The staffing changes arrive shortly after Netflix received a substantial breakup fee tied to a terminated acquisition effort. The company collected about $2.8 billion after stepping away from its proposed transaction involving Warner Bros. Discovery Inc. (NASDAQ:WBD).
On March 6, Bank of America Securities analyst Jessica Reif Ehrlich maintained a Buy rating, lowering the price forecast from $149 to $125.
Earlier this month, Netflix said it acquired filmmaking technology company InterPositive, founded by American actor Ben Affleck.
In a release dated January 20, Netflix said it ended the fourth quarter with gross debt of $14.5 billion and cash and cash equivalents of $9 billion.
Leadership Realignment
The staffing changes follow a recent leadership transition inside the technology and product divisions. Elizabeth Stone recently advanced from chief technology officer to chief product and technology officer, Variety adds.
Her expanded responsibilities now cover product development, engineering, and data teams across the company. The restructuring aligns the product group with the broader technology organization.
While Netflix has not disclosed the exact number of affected workers, the reductions represent a small share of the overall workforce.
The streaming company employs roughly 16,000 people worldwide.
Most employees work in North America, while additional teams operate across Europe, the Middle East, Africa, Asia-Pacific, and Latin America.
NFLX Price Action: Netflix shares were down 0.01% at $94.88 at the time of publication on Thursday, according to Benzinga Pro data.
Photo by DIA TV via Shutterstock
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