Netflix laid off 2% of its employees

AGI – Netflix said it has laid off nearly 2 percent of its employees after growth slowed the once-thriving streaming TV service..

“These changes are driven primarily by business needs rather than individual performance, which makes them particularly challenging, as none of us want to say goodbye to such great colleagues,” a company spokesperson told AFP.

About 150 employees have been laid off, most of them in the United StatesThe spokesperson said, adding that Netflix has also reduced spending on contractors.

The moves came just weeks after Netflix announced it was losing subscribers for the first time in more than a decade.

“Our slowdown in revenue growth means we also need to slow our cost growth as a company,” the spokesperson said.

Netflix closed the first quarter of this year with 221.6 million subscribersslightly lower than in the last quarter of last year.

The company blamed the quarterly wear on suspending its services in Russia due to Moscow’s invasion of Ukraine.

A drop of just 200,000 users, less than 0.1% of its total customer base, was enough to spark panic on Wall Street when Netflix announced quarterly earnings in April.

CFO Spence Neumann said on an earnings call that Netflix will “pull” out of spending for the next two years, while continuing to invest billions of dollars in the platform.

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