It confirmed in a statement that it has laid off about 150 primarily U.S.-based staffers as it works to rein in costs as its top-line growth has slowed down.

A Netflix representative wrote in an emailed statement, "As we explained on earnings, our slowing revenue growth means we also have to slow our cost growth as a company. So sadly, we're 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.”

Deadline reported that some of those let go were in creative, including in original content. According to its report, directors from the original series area, such as Sebastian Gibbs and Negin Salmasi, were among those let go.

Separately, TechCrunch learned that there have been some changes to animated projects, which could impact around 70 employees in the animation division. These weren't included in the 150 number.

We asked Netflix to respond to the accusations on Twitter that layoffs had focused on social channels specifically designed to bring underrepresented viewers into the service. An example of one such tweet pointed out that channels like Strong Black Lead, Golden, Most, and Con Todo had been touched by this headcount reduction.

Netflix went on to clarify that none of its social channels, including the ones it had listed on Twitter and others (such as Geeked, Netflix Family, Netflix is a Joke, etc.), would shut down. The company indicated those would remain staffed and run by full-time Netflix employees just as they had been before.

What did occur, however, is that Netflix chose not to continue contracts with specific agencies with which it was formerly leasing contractors for its publishing and social arms. With those contracts ended, there was a net decrease in the number of contractors working across all of Netflix's social channels. Those contractors are not included in Netflix's count of 150 roles terminated as that figure is specifically tied to Netflix's employee numbers. The layoffs have not altered the makeup of Netflix from a DEI perspective because its reporting here looks at full-time staff. People of color continue to make up about 50% of the U.S. and Canadian full-time workforce, the company says, as women comprise about 48% of the staff.

The company declined to say how many contractors were impacted by the agency contract terminations.

After publication, the Netflix Twitter account announced that none of the social channels were closing and would continue with "voices celebrating — and from — those communities."
Your favorite Black, LGBTQ+, API, and Latinx stories will always have a home on @strongblacklead @Most @netflixgolden & @contodonetflix, with voices celebrating – and from – those communities. pic.twitter.com/mJcMfXbKgT

According to a Netflix spokesperson, the company is making changes to how it supports its publishing efforts, including bringing some of this important work in-house. The social channels are still growing and innovating, and they're investing quite heavily in them.

Those agency contract terminations also fell in the layoffs that have lately affected Netflix's marketing, with 25 full-time employee people being let go. Marketing cuts had also affected Netflix's site Tudum, which is relatively newer, besides other marketing roles. (This round of layoffs also included a mix of full-time employees and contractors, but 25 was the number of full-time employees impacted.)

Indeed, staff reductions were expected. "Our revenue growth has slowed considerably as our results and forecast below show," said the company in its quarterly letter to shareholders.

Netflix reported $7.87 billion revenue for the first quarter of 2022, but it lost about 200,000 subscribers. Analysts had estimated $7.93 billion and 2.7 million subscribers. Of course, a belt-tightening was on the horizon as soon as those quarterly figures hit.

Netflix shares fall more than 20% after losing 200,000 subscribers in first quarter

Cost cuts and loss of subscribers also were discussed by Netflix CFO Spencer Neumann on the latest earnings call.

He said, “ … presumably, for the next 18, 24 months, call it the next two years, we’re kind of operating to roughly that operating margin, which does mean that we’re pulling back on some of our spend growth across both content and non-content spend, but still growing our spend and still investing aggressively into that long-term opportunity.”

Neumann added, “We’re trying to be smart about it and prudent in terms of pulling back on some of that spending growth to reflect the realities of the revenue growth of the business.”

Netflix has been scrambling as of late, cracking down on password sharing and announcing a cheaper ad-supported tier in hopes of gaining new subscribers and driving further growth.