Netflix will cut 1,000 jobs globally, affecting about 6% of its workforce. The layoffs primarily target human resources, legal, product and technology teams, marking the company's steepest staff reduction since 2022.
Co-chief executives Ted Sarandos and Greg Peters announced the cuts in an email to staff, saying the company would "continue to invest aggressively in high-impact areas to improve our service and further drive growth and innovation." Sarandos told Bloomberg last month that Netflix was "not growing as fast as I want us to."
The cuts reflect pressure from intensifying competition. Paramount completed a $110bn merger with Warner Bros Discovery last month. Free platforms including YouTube and TikTok continue attracting viewers. Netflix had pursued its own deal with Warner Bros but was outbid by Paramount.
Netflix said it remains on track to meet financial forecasts ahead of earnings results on October 20. Investors have focused on user engagement metrics as the company competes for screen time.
The streaming service has continued commissioning content, with "Below" an underwater mystery series currently its most popular show. Netflix has also expanded into gaming and advertising, allowing ads before and during shows and films. Ross Benes, senior analyst at eMarketer, noted that these new ventures have not yet generated major revenue. "They haven't been able to find another line of major revenue," Benes said. He added that the subscription business "could be approaching a plateau."
Managers will inform affected employees of job cuts soon. This is Netflix's largest reduction since 2022, when it cut approximately 450 jobs after losing subscribers for the first time in over a decade.