Netflix is set to lay off approximately 150 employees in an attempt to curb costs following slow revenue growth in the first quarter of 2022.
The layoffs constitute approximately 2 percent of Netflix’s U.S. workforce and cut across all departments, according to Variety.
A company representative explained that the cross-department layoffs are not a result of employee performance, but rather an effort to reduce costs following slow growth in the first quarter.
“As we explained [in reporting Q1] earnings, our slowing revenue growth means we are also having to slow our cost growth as a company,” the representative said in an email, according to Variety.
“So sadly, we are letting around 150 employees go today, mostly U.S.-based. 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 contract employees were also affected by the layoffs, Variety reported. Netflix is additionally cutting 70 part-time positions in its animation studio and canceling projects including “Wings of Fire” and “Antiracist Baby.”
Netflix lost 200,000 subscribers in the first quarter of 2022 and is expected to lose an additional 2 million by the end of Q2, according to a letter from the company to its shareholders.
The streaming service stated that 500,000 subscribers would have been added in Q1 had it not been for cutting its content in Russia.
Netflix did not immediately respond to the Daily Caller News Foundation’s request for comment.
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