Netflix to cut 1,000 jobs in its largest layoff round since 2022
Streaming company Netflix will cut about 1,000 jobs worldwide, its biggest reduction since 2022, as it faces competition from rival streaming services and free video platforms.
Netflix, the US streaming entertainment company, has announced it will eliminate about 1,000 jobs globally, roughly 6% of its workforce. It is the company's largest round of layoffs since 2022. The cuts will mainly hit human resources, legal, product and technology teams. The company links the move to growing competition in the streaming market.
Competition and a changing industry
Last month, co-chief executive Ted Sarandos told the Bloomberg Screentime summit that Netflix was "not growing as fast as I want us to". The industry is consolidating: Paramount has completed a $110bn merger with Warner Bros, the owner of HBO. Netflix had come close to its own deal for Warner Bros but was outbid by Paramount. Meanwhile, free platforms such as YouTube and TikTok keep attracting viewers.
Message to staff
In an email to employees, Sarandos and fellow co-chief executive Greg Peters said Netflix would "continue to invest aggressively in high-impact areas" to improve its service and drive growth. They said the company's mission to entertain the world is ambitious and requires discipline in how people and resources are prioritised. Managers will tell staff "soon" whether their jobs are affected. The email added that the company is on track to meet its financial forecasts. Netflix is due to report its latest results on 20 October.
Sources of revenue
Investors are weighing user engagement, meaning the time customers spend on Netflix. The company continues to commission shows, and its most popular at present is "Below", an underwater mystery series. It has also tried to expand into gaming and advertising before and during programmes. However, Ross Benes, senior analyst at eMarketer, said the company has not found another major revenue line and still depends on a subscription business that may be nearing a plateau.
The previous major round of redundancies came in 2022, when Netflix cut about 450 jobs after losing subscribers for the first time in more than a decade.
