Netflix announced plans to eliminate 1,000 jobs globally, representing approximately 6% of its workforce and marking its steepest reduction since 2022. The cuts will primarily affect human resources, legal, product and technology teams.
Co-chief executives Ted Sarandos and Greg Peters said in an email to staff that the company would "continue to invest aggressively in high-impact areas to improve our service and further drive growth and innovation." Sarandos told the Bloomberg Screentime summit last month that Netflix was "not growing as fast as I want us to."
The layoffs come as Netflix confronts intensifying competition from free platforms like YouTube and TikTok, as well as consolidation in the streaming sector. Paramount merged with Warner Bros, owner of HBO, for $110 billion. Netflix reportedly came close to its own deal with Warner Bros but was outbid by Paramount.
Sarandos and Peters framed the cuts as part of disciplined resource allocation, stating the company needed to "be disciplined about where we prioritise our people and resources" given its mission to "entertain the world."
Netflix said it remains on track to meet financial forecasts ahead of its earnings report on October 20. The company continues commissioning content, with the underwater mystery series "Below" among its current popular shows. It has also expanded into gaming and advertising, allowing ads before and during shows and films.
Ross Benes, senior analyst at eMarketer, said Netflix "haven't been able to find another line of major revenue" beyond its core subscription business. He noted the company remains dependent on subscriptions that "could be approaching a plateau" and faces a need to diversify revenue streams.
Managers will inform affected employees of job cuts "soon." This represents Netflix's largest reduction since 2022, when it cut about 450 jobs after losing subscribers for the first time in more than a decade.