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Netflix Employee Reportedly Laid Off Over Chappelle Show Leak

Internal unrest over content of comedian's latest program continues at streaming giant.

Netflix  (NFLX) - Get Netflix, Inc. (NFLX) Report laid-off an employee for sharing "confidential" and "commercially sensitive information" to the press published reports said Friday. 

The move came as the company struggles to contain the impact of an internal staff protest over transphobic material in its new comedy special starring Dave Chappelle.

“We have let go of an employee for sharing confidential, commercially sensitive information outside the company,” according to a Netflix statement cited by The Verge and The Wall Street Journal Friday. “We understand this employee may have been motivated by disappointment and hurt with Netflix, but maintaining a culture of trust and transparency is core to our company."

Financial performance data on Chappelle's show "The Closer" and others was reported by Bloomberg News, two days ago. 

Netflix reportedly spent $24.1 million on the show and $23.6 million on Chappelle’s 2019 special, "Sticks & Stones." The 2019 show had an "impact value" of just over $19 million, according to company statistics reported by Bloomberg.

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According to a report by The Verge, the employee that was let go was a black female. TheStreet could not confirm this independently.

Chappelle's latest installment for Netflix has been widely criticized by trans activists for being transphobic, however, top management including Co-Chief Executive Officer Ted Sarandos has reportedly maintained that the show did not cross a line.

Co-CEO Reed Hastings vowed in an internal email that the company would continue to work with Chappelle, Bloomberg reported. 

The New York Times Comedy Critic Jason Zinoman wrote in a recent column that Dave Chappelle "remains a gifted yarn-spinner who shifts from gravitas to irreverence as deftly as anyone... But judged purely by originality and construction of jokes, he’s a star in decline."

Netflix reports third quarter earnings on Oct. 19.

Shares of the Los Gatos, Calif., company closed 0.87% lower at $628.29 at the end of trading on Friday.