Netflix lays off about 150 employees, mostly in the U.S.

A photograph of the emblem of the Netflix streaming service supplier in Paris September 15, 2014. REUTERS/Gonzalo Fuentes

Could 17 (Reuters) – Netflix (NFLX.O) on Tuesday stated it has laid off about 150 folks, largely in the USA, because the streaming service firm faces slowing progress.

The layoffs signify roughly 2% of the corporate’s workforce in the USA and Canada.

“These adjustments are primarily pushed by enterprise wants moderately than particular person efficiency, which makes them particularly robust as none of us need to say goodbye to such nice colleagues,” the corporate stated in an announcement. “We’re working laborious to assist them by means of this very troublesome transition.”

The job cuts come as Netflix reported its first lack of subscribers in additional than a decade and forecast deeper losses within the coming quarter. It stated the struggle in Ukraine and fierce competitors contributed to the lack of clients.

Because of its declining progress, Netflix stated it will introduce a less expensive, ad-supported tier and look extra intently at its spending.

“We’re attempting to be good about it and prudent when it comes to pulling again on a few of that spend progress to mirror the realities of the income progress of the enterprise,” Netflix Chief Monetary Officer Spencer Neumann advised traders throughout the firm’s most up-to-date earnings name.

Reporting by Daybreak Chmielewski in New York; Modifying by Mark Porter, Bernard Orr

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