Netflix to lay off about 1,000 employees in biggest cuts since 2022

Streaming giant Netflix is implementing its largest workforce reductions since 2022, as reported by an internal memo obtained by Reuters. The company will be cutting about 6% of its workforce, which amounts to roughly 1,000 employees. The majority of these job cuts will affect Netflix's product, technology, legal, and human resources teams.

Co-CEOs Greg Peters and Ted Sarandos addressed their employees in a message sent on Wednesday, stating that the streaming pioneer's mission to entertain the world is ambitious and requires a disciplined approach in prioritizing people and resources. Despite the challenges, Netflix assures that its business remains strong and on track to deliver its full-year forecast.

The company, which employed around 16,000 people at the end of last year, has been grappling with increasing competition for viewers and engagement from legacy rivals and YouTube. Engagement, or the time users spend on Netflix, has become a significant concern for investors as platforms like YouTube and TikTok offer free-to-watch, user-generated content, providing them with a cost advantage over Netflix.

Netflix's struggles have been further compounded by its failed bid to acquire Warner Bros Discovery's streaming and studio assets earlier this year and the successful acquisition by Skydance. Analysts suggest that Netflix's heavy reliance on its subscription business, which may be nearing a ceiling, has made it difficult for the company to find another source of major revenue.

To diversify its offerings, Netflix has been investing in ad tiers, live programming, and gaming. The last major round of layoffs at Netflix occurred in 2022, when the company eliminated about 450 jobs in two rounds following a subscriber decline for the first time in over a decade.