Netflix will cut 1,000 jobs globally, equivalent to 6% of its workforce, the steepest reduction since 2022. The layoffs will primarily affect human resources, legal, product and technology teams, the company said.
Co-chief executives Ted Sarandos and Greg Peters announced the cuts in an email to staff, stating the company would "continue to invest aggressively in high-impact areas to improve our service and further drive growth and innovation." Managers will notify affected employees shortly.
Sarandos told Bloomberg last month that Netflix was "not growing as fast as I want us to." The company faces intensifying competition from established rivals and free platforms. Paramount recently merged with Warner Bros, owner of HBO, in a $110 billion deal. Netflix had pursued its own deal with Warner Bros but was outbid by Paramount. YouTube and TikTok continue to draw viewers away from paid streaming services.
Netflix said it remains on track to meet financial forecasts ahead of earnings reported on October 20. The company has continued greenlighting shows, with the underwater mystery series "Below," starring Josh Hartnett, among its most popular. Netflix has also attempted to diversify revenue through gaming and ad-supported tiers.
Ross Benes, senior analyst at eMarketer, told the BBC that Netflix "hasn't been able to find another line of major revenue." He said the company remains dependent on subscriptions that may be nearing saturation. "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," Benes said.
The 2024 cuts follow a 2022 layoff round when Netflix cut approximately 450 jobs after losing subscribers for the first time in more than a decade.