Netflix co-founder Reed Hastings will step down from the company's board of directors in June, the streaming giant announced during its latest earnings report. Hastings, who has served as board chairman, will not stand for re-election when his term expires.

The departure marks the end of an era for Hastings, who helped transform Netflix from a DVD-by-mail service into a global streaming powerhouse that fundamentally changed how people consume entertainment. Under his leadership, the company evolved from physical video rental delivery to digital streaming, disrupting traditional television and movie distribution models.

Netflix shares fell more than 9% in after-hours trading following the earnings report and announcement of Hastings' departure. The company released its financial results after withdrawing from a potential Warner Discovery acquisition bid.

Hastings' exit comes as Netflix continues to navigate an increasingly competitive streaming landscape, with established media companies and tech giants launching their own platforms. The co-founder's departure represents a significant leadership transition for the company as it faces new challenges in subscriber growth and content competition.

The company has not yet announced who will replace Hastings as board chairman or detailed the succession planning process. Hastings' influence on the entertainment industry extends far beyond Netflix, having helped establish many of the business models and viewing habits that define modern streaming services.