Netflix cuts about 6% of jobs: WSJ

Netflix is cutting around 1,000 positions, comprising 6% of its global workforce, as the streaming service reevaluates staffing and strives to enhance subscriber engagement. The largest workforce reductions since 2022 were disclosed to employees on Wednesday by Co-Chief Executives Greg Peters and Ted Sarandos, as reported by The Wall Street Journal.

The majority of the cuts will impact teams in product development, technology, legal, and human resources. In an email to staff, the executives emphasized their mission to "entertain the world" and the necessity to prioritize resources and personnel judiciously. Netflix has expanded its content offerings beyond on-demand movies and TV shows, incorporating live events, sports, video podcasts, and content from YouTube creators.

The company has also explored partnerships with other streaming services and programming channels to boost user engagement on its platform. Despite retaining a robust subscriber base, with the U.S. cancellation rate hovering around 2%, Netflix shares have declined by more than 40% over the past year, prompting renewed emphasis on the company's capacity to sustain growth and satisfy investor expectations.

The job cuts coincide with similar downsizing decisions made by other major entertainment and technology firms, such as Disney and Amazon. However, Netflix reassures that it will continue investing heavily in high-impact areas and meet its full-year earnings forecast. The co-CEOs assured employees that the company remains on track to achieve its annual earnings targets.

Netflix's previous significant layoffs occurred in June 2022, following its first quarterly subscriber decline in over a decade.