Netflix cuts 1,000 jobs in its biggest layoffs since 2022; CEOs issue letter to staff - ‘Our mission is…’

Netflix has announced it will be reducing its workforce by 1,000 employees globally, marking the largest cuts since 2022. The layoffs primarily affect the company's human resources, legal, product, and technology teams, accounting for approximately 6% of its total workforce. This decision comes as Netflix faces increased competition from rivals, with the streaming industry undergoing consolidation following Paramount's $110 billion merger with Warner Bros, the owner of HBO.

Netflix co-chief executive Ted Sarandos stated during the Bloomberg Screentime summit that the company is not growing as quickly as they had hoped. In an email to staff, Sarandos and co-chief executive Greg Peters revealed that Netflix would continue investing aggressively in high-impact areas to enhance their service and drive growth and innovation. They emphasized that their mission to entertain the world remains ambitious and requires disciplined prioritization of people and resources.

Sarandos and Peters explained that the organizational changes are necessary to maintain focus and efficiency. Employees will be informed of their job status shortly. Netflix is currently on track to meet its financial forecasts, with the company expected to report its latest results on October 20. The streaming service continues to invest in original content, with "Below," an underwater mystery series, being one of its most popular shows.

However, analysts note that Netflix has yet to find another major revenue stream, as they are nearing a ceiling with their subscription-based model.