Netflix (NFLX.O) announced on Tuesday that it had laid off roughly 150 individuals, largely in the United States, due to low financial growth.
According to Reuters, the layoffs affected about 2% of the company’s staff in the United States and Canada.
“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,” the company said in a statement. “We’re working hard to support them through this very difficult transition.”
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The layoffs came as Netflix disclosed its first subscriber decline in more than a decade, with further losses expected in the coming quarter. Customers were lost as a result of the Ukrainian conflict and strong rivalry, according to the report.
Netflix said it will create a lower, ad-supported tier as a result of its slowing subscription growth and would scrutinize its expenditure more thoroughly.
Spencer Neumann, Netflix’s Chief Financial Officer told investors during the company’s most recent earnings call, “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,” Neumann said.
