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

Key points

• Netflix will cut about 1,000 jobs, roughly 6% of its workforce, the steepest reduction since 2022.
• The cuts mainly affect human resources, legal, product and technology teams.
• Co-CEOs Sarandos and Peters said Netflix will keep investing aggressively in high-impact areas.

Netflix is cutting around 1,000 jobs, about 6% of its total workforce, in its steepest reduction since 2022. The cuts will mainly affect its human resources, legal, product and technology teams.

In an email to staff, co-chief executives Ted Sarandos and Greg Peters said the company would continue to invest aggressively in high-impact areas to improve its service and drive growth and innovation. Managers will tell employees whether their job has been cut soon.

Why the cuts are happening

Last month, Sarandos told the Bloomberg Screentime summit that the company was not growing as fast as he wanted. The streaming industry is consolidating after Paramount's $110bn merger with Warner Bros, the owner of HBO, while free platforms such as YouTube and TikTok keep attracting viewers.

Netflix came close to its own deal with Warner Bros but was outbid by Paramount. Sarandos and Peters said delivering on the mission to entertain the world requires discipline about where the company prioritises people and resources.

not growing as fast as I want us to

— Ted Sarandos

Financial outlook and competition

The email said Netflix is on track to meet its financial forecasts, and the company is due to report its latest results on 20 October. Investors have been weighing up user engagement as Netflix competes with YouTube and TikTok.

Netflix has kept commissioning shows, with its most popular currently the underwater mystery series Below, and has tried to expand into gaming and advertising. Ross Benes, senior analyst at eMarketer, said the company has not been able to find another line of major revenue and remains reliant on a subscription business that could be nearing a plateau.