Netflix is laying off more employees.
Around 150 employees across the company–or 2% of the streamer’s workforce–will be laid off, according to The Hollywood Reporter. Additionally, around 70 roles in the animation division are being eliminated, along with the reduction contractor roles in its social media and publishing channels, the entertainment business news outlet reports.
Employees who are affected are expected to get severance compensation starting at four months, though this time frame may be extended based on the role and length of service, per THR.
“Our slowing revenue growth means we are also having to slow our cost growth as a company,” a Netflix spokesperson told THR. “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.”
The latest round of layoffs comes less than a month after Netflix’s editorial and marketing division laid off a number of full-time employees and contractors.
Netflix experienced its first quarterly subscriber loss—and first in a decade—back in April.
The company’s stock sank more than 20% after it said it lost 200,000 subscribers in 2022’s first quarter.
The streamer reported in April had lost 200,000 subscribers in the first quarter and expects to lose another 2 million in the second quarter during its first-quarter earnings presentation. After the announcement, the company’s stock sank more than 20%, and due to the stock drop, layoffs were expected, according to Deadline.
To compensate for its declining growth, Netflix plans to create a cheaper, ad-supported tier due to its falling growth and will start reducing its spending to protect its margins, but the streamer is still estimated to spend $17 billion on content.