Netflix to shed 1,000 jobs in steepest cuts since 2022

Netflix has announced it will be cutting 1,000 jobs globally, marking its steepest workforce reductions since 2022. The majority of these positions will come from its human resources, legal, product, and technology teams, accounting for approximately 6% of its total workforce. This move comes amid growing competition from rivals, with the streaming giant admitting it is not growing as rapidly as desired.

Last month, co-chief executive Ted Sarandos stated this sentiment during the Bloomberg Screentime summit. The streaming industry is experiencing a consolidation period following the $110bn merger between Paramount and Warner Bros, the owners of HBO. In an employee email, Sarandos and co-chief executive Greg Peters emphasized that despite the cuts, Netflix remains committed to investing aggressively in high-impact areas to enhance its service and drive further growth and innovation.

They added that their mission to entertain the world is ambitious and requires disciplined prioritization of people and resources. Netflix hopes to meet its financial forecasts, as it is scheduled to report its latest results on October 20. Analyst Ross Benes of eMarketer noted that while Netflix continues to produce popular shows, such as "Below," and explores additional revenue streams like gaming and ads, the company remains heavily reliant on its subscription-based model, which may be nearing a plateau.