In brief
Netflix announced a 1,000‑job cut, trimming about 6% of its workforce amid stiffening streaming competition and a plateauing subscription model. The layoffs target HR, legal, product and tech teams. Company execs vow to keep investing in high‑impact areas while looking for new revenue streams. Analysts expect the move to tighten finances ahead of the 20 October earnings report.
Netflix announced this week it will cut 1,000 jobs worldwide, the most significant round of redundancies since 2022. The cuts amount to roughly 6% of its staff and will hit the human‑resources, legal, product and technology divisions.
Co‑chief executive Ted Sarandos told Bloomberg’s Screentime summit that growth was slipping, “not growing as fast as I want us to.” Competition is intensifying as rivals like Paramount Global and Warner Bros. Discovery have merged, while free services such as YouTube and TikTok continually draw viewers.
The company intends to keep investing heavily in “high‑impact” areas that will improve the user experience and drive growth, Sarandos and co‑chief Greg Peters wrote to staff. Their email also stressed that the mission – to entertain the world – demands discipline in prioritising people and resources.
Netflix is preparing to report its latest earnings on 20 October. Financial analysts are closely watching user engagement levels, as the company relies on a subscription model that analysts say could be reaching a plateau.
In the same email, senior analyst Ross Benes of eMarketer noted that while Netflix has announced gaming and advertising initiatives, “they haven’t been able to find another line of major revenue.” With future growth uncertain, the company may need new revenue streams to diversify.
Earlier this year, the streaming giant slashed 450 positions after its subscriber base fell for the first time in more than a decade. These new cuts mark the steepest downturn in staff numbers since the 2022 round.
