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Roughly 150 employees were laid off from Netflix due to "business needs," a company spokesperson said Tuesday.
Why it matters: The announcement comes as the streaming giant continues to face slow revenue growth.
What they're saying: "As we explained on earnings, our slowing revenue growth means we are also having to slow our cost growth as a company. So sadly, we are letting around 150 employees go today, mostly US-based," a Netflix spokesperson told Axios.
- "These changes are primarily driven by business needs rather than individual performance, which makes them especially tough as none of us want to say goodbye to such great colleagues. We're working hard to support them through this very difficult transition."
- “A number of agency contractors have also been impacted by the news announced this morning. We are grateful for their contributions to Netflix.”
Details: Employees are expected to earn a severance package starting at four months, per The Hollywood Reporter.
- This could change depending on the staffer's position and how long they've been with Netflix.
The big picture: Netflix experienced its first quarterly subscriber loss — and first in a decade — back in April, Axios' Sara Fischer writes.
- The company's stock sank more than 20% after it said it lost 200,000 subscribers in 2022's first quarter.
- Due to the stock drop, layoffs were expected, according to Deadline.
What's next: Netflix CFO Spencer Neumann said in an earnings call Tuesday that the company would be pulling back on spending growth, per Deadline.
- However, he said Netflix will still be "investing aggressively" into "long-term" opportunities.
- “We’re trying to be smart about it and prudent in terms of pulling back on some of that spend growth to reflect the realities of the revenue growth of the business.”
Go deeper ... Netflix's next moves will have big implications