Netflix will cut 1,000 jobs globally, its steepest reduction since 2022, as the streaming company confronts slowing growth and intensifying competition from rivals.
The cuts affect approximately 6% of Netflix's workforce and will concentrate on human resources, legal, product and technology teams. Co-chief executives Ted Sarandos and Greg Peters announced the changes in a staff email, stating the company must "be disciplined about where we prioritise our people and resources."
Sarandos told Bloomberg last month that Netflix was "not growing as fast as I want us to." The company faces headwinds from multiple directions. Paramount completed a $110bn merger with Warner Bros (owner of HBO), while free platforms YouTube and TikTok continue drawing viewers away from paid services. Netflix itself came close to a Warner Bros deal but was outbid by Paramount.
The email stated Netflix would "continue to invest aggressively in high-impact areas to improve our service and further drive growth and innovation" and confirmed the firm remains on track to meet financial forecasts ahead of earnings on 20 October.
Ross Benes, senior analyst at eMarketer, identified a fundamental constraint. "They haven't been able to find another line of major revenue," Benes 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 subscription business, he noted, could be approaching a plateau.
Netflix has pursued new revenue channels including gaming and an ad-supported tier, though neither has generated material income. The company continues commissioning content, with the underwater mystery series "Below" (starring Josh Hartnett) currently its most popular show.
The 2022 redundancy round cut approximately 450 jobs after Netflix lost subscribers for the first time in over a decade. That layoff signalled a shift from growth-at-all-costs to profitability-focused operations. Today's larger cut underscores persistent pressure on user growth even as engagement metrics remain central to investor assessments.
Managers will notify affected employees of job cuts shortly.