Netflix is slashing roughly 1,000 jobs, its deepest cuts since 2022.
The layoffs, disclosed to staff in a Wednesday memo, amount to about 6% of the workforce and hit product, tech, legal, and human resources divisions, the document showed. Co-CEOs Greg Peters and Ted Sarandos delivered the news directly to employees.
“Our mission—to entertain the world—is ambitious, and delivering on it requires us to be disciplined about where we prioritize our people and resources,” Peters and Sarandos wrote in the message, which was obtained by the Wall Street Journal.
The streaming leader still commands 325 million subscribers globally, more than any rival. Yet Wall Street has soured: shares have plunged 40% over the past year, even as the stock ticked up roughly 1% following the layoff announcement.
Peters and Sarandos sought to reassure remaining staff about the company’s financial trajectory. They told employees Netflix would “continue to invest aggressively in high impact areas” and said the company remains on track to meet its earnings forecast.
The executives struck a defiant note about the broader competitive landscape. “This is one of the most dynamic times in the history of entertainment,” they said.
The cuts arrive as Netflix confronts a stubborn engagement problem. Bloomberg reported over the summer that the platform’s biggest shows were hemorrhaging viewers, with more than half of audiences dropping off after just one season. The company has responded by pushing into new formats, adding video podcasts and live programming to its mix.
The streaming wars have only grown more brutal. Netflix now battles Disney, Amazon, and Skydance for shrinking consumer attention, and analysts warn that consolidation could eventually drive subscription prices higher across the board.
A new advocacy group, the American Entertainment Alliance, piled on fresh pressure Thursday by demanding legislation that would force streaming companies to steer half their original programming budgets to independent producers, reports said.
Netflix is betting on splashy content and sports rights to turn momentum. On Tuesday, the company secured exclusive Spanish broadcast rights for the 2030 FIFA World Cup. Its development pipeline also includes “Narnia: The Magician’s Nephew,” a film from writer-director Greta Gerwig.
The company’s third-quarter earnings are due next week. Revenue climbed 13% in the second quarter to $12.6 billion.