Netflix Inc NFLX is reportedly laying off nearly 150 employees due to “business needs.”
What Happened: A representative of the subscription video-on-demand firm said its “slowing growth” meant that it had to slow the “cost growth as a company,” reported CNBC, which cited a company spokesperson.
“We are letting around 150 employees go today, mostly U.S.-based. These changes are primarily driven by business needs rather than individual performance,” CNBC quoted a Netflix spokesperson as saying.
See Also: How To Buy Netflix (NFLX) Stock
Why It Matters: The layoffs at Netflix make up for less than 2% of its 11,000 employees. Most of the cuts affect the company’s U.S. offices, according to CNBC.
The Netflix spokesperson said it was supporting its employees “through this very difficult transition.”
The video streaming company registered its first subscriber loss since 2011 in the first quarter. Netflix reported Q1 revenue of $7.71 billion missing Street estimates of $7.93 billion.
Price Action: On Tuesday, Netflix shares closed 2.2% lower at $190.56 in the regular session and rose 0.1% after the bell, according to Benzinga Pro data.
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