Netflix announced plans to cut 1,000 jobs globally, marking its steepest workforce reduction since 2022. The cuts represent approximately 6% of the company's total workforce and will primarily affect human resources, legal, product and technology teams.
Co-chief executives Ted Sarandos and Greg Peters disclosed the decision in a staff email, citing the need to "be disciplined about where we prioritise our people and resources." Sarandos previously told Bloomberg that Netflix was "not growing as fast as I want us to," signaling broader concerns about the company's trajectory.
The streaming industry faces mounting competitive pressure. Paramount completed a $110 billion merger with Warner Bros (owner of HBO), while free platforms including YouTube and TikTok continue to draw viewers away from paid services. Netflix had reportedly approached Warner Bros for a potential deal but was outbid by Paramount.
The company stated it would "continue to invest aggressively in high-impact areas to improve our service and further drive growth and innovation." Netflix remains on track to meet its financial forecasts ahead of earnings due October 20.
Managers will inform affected employees of job cuts imminently. The last major reduction occurred in 2022, when Netflix cut approximately 450 positions after losing subscribers for the first time in over a decade.
Ross Benes, senior analyst at eMarketer, noted that Netflix "hasn't been able to find another line of major revenue." While the company continues commissioning content (currently its most popular show is "Below," an underwater mystery series) and has expanded into gaming and advertising models, these initiatives have not yet generated substantial new revenue streams. Benes suggested the subscription business may be approaching a plateau, requiring Netflix to develop additional revenue sources to sustain growth.