Netflix (NFLX.O) said on Tuesday that it had fired about 150 people, mostly in the United States, because it was not making enough money.
Reuters says that about 2% of the company’s staff in the United States and Canada lost their jobs because of the layoffs.
“These changes are mostly based on business needs rather than individual performance,” the company said in a statement. “This makes them even harder because none of us want to say goodbye to such great coworkers.” “We’re doing our best to help them through this very hard change.”
Netflix said that it had lost subscribers for the first time in more than a decade, and more losses are expected in the next quarter. This led to layoffs. According to the report, customers were lost because of the conflict in Ukraine and the high level of competition.
Netflix said that because its subscription growth is slowing, it will add a lower-tier with ads and look more closely at how much it spends.
During Netflix’s most recent earnings call, the company’s Chief Financial Officer, Spencer Neumann, told investors, “We’re trying to be smart and prudent about it by pulling back on some of that spending growth to reflect the realities of the business’s revenue growth.”
