Netflix announced plans to cut 1,000 jobs worldwide, affecting roughly 6% of its workforce. The layoffs target human resources, legal, product, and technology teams, marking the streaming giant’s largest round of job cuts since 2022.
Co-chief executives Ted Sarandos and Greg Peters outlined the decision in an internal email to staff. They wrote that the company’s mission “to entertain the world” requires discipline in how it prioritises people and resources. Managers will inform employees soon if their roles are impacted.
Sarandos told the Bloomberg Screentime summit last month that Netflix was “not growing as fast as I want us to”. The announcement comes amid rising competition and industry consolidation. Paramount’s $110bn merger with Warner Bros., owner of HBO, reshaped the streaming landscape. At the same time, free platforms such as YouTube and TikTok continue to draw viewers.
Netflix had pursued a deal with Warner Bros. itself but was outbid by Paramount. Despite the setbacks, Sarandos and Peters said the company would “continue to invest aggressively in high-impact areas to improve our service and further drive growth and innovation.”
The company is on track to meet its financial forecasts and will report its latest results on 20 October. Investors have closely watched user engagement figures, measuring the time subscribers spend on Netflix, as the service vies for attention against short-form video platforms.
Netflix’s current slate includes the underwater mystery series Below, starring Josh Hartnett, which ranks among its most popular shows. The company has also expanded into gaming and introduced ad-supported subscription tiers, allowing adverts before and during programming.
Senior analyst Ross Benes of eMarketer said the company has not yet found a new major revenue line beyond subscriptions. “They remain reliant on a subscription business that could be approaching a plateau,” he said. “Eventually, because they’re nearing a ceiling with that, they’ll need another revenue stream to diversify, and that’s where it’s been more of a struggle.”
Netflix’s last significant layoffs came in 2022 when around 450 jobs were cut after the service lost subscribers for the first time in over a decade. The new cuts almost double that figure as the company adjusts to a shifting market.
The streaming sector is undergoing rapid change, with big mergers and shifting viewer habits putting pressure on established players. Netflix’s moves suggest it is recalibrating its workforce and strategy amid intensifying competition.
According to Joy Online.
