Netflix is cutting 1,000 jobs globally, marking its largest workforce reduction since 2022. The layoffs affect approximately 6% of the company's total workforce, with cuts concentrated in human resources, legal, product and technology teams.
Co-chief executives Ted Sarandos and Greg Peters announced the cuts in an email to staff, saying the company must be "disciplined about where we prioritise our people and resources" to deliver on its mission to "entertain the world." Managers will inform affected employees of their job status soon.
Sarandos told the Bloomberg Screentime summit last month that Netflix was "not growing as fast as I want us to." The streaming industry faces intensifying competition from rivals including YouTube and TikTok, as well as consolidation among legacy media companies. Paramount merged with Warner Bros owner HBO for $110 billion, a deal Netflix reportedly came close to before being outbid.
In their email, Sarandos and Peters stated Netflix would "continue to invest aggressively in high-impact areas to improve our service and further drive growth and innovation." The company said it remains on track to meet financial forecasts ahead of its October 20 earnings report.
Netflix has diversified its business beyond subscriptions by launching gaming, introducing ad-supported tiers and commissioning content including its current most popular show, the underwater mystery series "Below." However, Ross Benes, senior analyst at eMarketer, said the company "hasn't been able to find another line of major revenue." He noted Netflix's subscription business may be approaching a plateau, forcing the company to seek new revenue streams.
The last major layoff round occurred in 2022, when Netflix cut approximately 450 jobs after losing subscribers for the first time in more than a decade.