Netflix cuts about 1,000 jobs in largest layoff round since 2022
5 sources↑ Market-relevant3 events
IN SHORT
Netflix is laying off approximately 1,000 employees, primarily from its product, tech, HR, and legal departments, in its most significant workforce reduction since 2022. The cuts come as the streaming giant faces a lagging stock price and slower growth.
Key Numbers
1,000employees laid off globally
6%of Netflix's total workforce affected by layoffs
2022year of Netflix's last major layoff round
Who's Involved
Netflix
announced about 1,000 global layoffs primarily affecting product, tech, legal, and HR departments
Ted Sarandos
co-chief executive, cited in internal memo about prioritizing resources
Greg Peters
co-chief executive, cited in internal memo about prioritizing resources
Ross Benes
senior analyst at eMarketer, said Netflix needs another revenue stream
↳ Why This Matters
The layoffs signal a period of adjustment for Netflix as it navigates increased competition and seeks new revenue streams beyond its core subscription business, impacting its workforce and strategic investments.
Key facts
Netflix is laying off approximately 1,000 employees, about 6% of its workforce.
The layoffs primarily impact product, tech, legal, and human resources departments.
Co-CEOs Ted Sarandos and Greg Peters said in an internal memo that the company needs to be disciplined about prioritizing people and resources.
The company is on track to meet its financial forecasts.
Netflix last conducted major layoffs in 2022, cutting about 450 jobs after losing subscribers for the first time in over a decade.
Netflix is laying off approximately 1,000 employees globally, representing about 6% of its workforce, in its largest round of job cuts since 2022. The streaming giant confirmed that the majority of the reductions will impact its product, technology, legal, and human resources departments.
Co-CEOs Ted Sarandos and Greg Peters stated in an internal memo that the company needs to be disciplined about prioritizing people and resources to deliver on its mission to entertain the world. They added that the firm is on track to meet its financial forecasts and will continue to invest aggressively in high-impact areas to improve its service and drive growth.
The streaming industry is undergoing consolidation, with rivals facing competition from free platforms like YouTube and TikTok. Netflix has been exploring various strategies to boost revenue and user engagement, including expanding its gaming offerings, introducing an ad-supported tier, and investing in live events and AI-supported features. However, analysts note that the company's reliance on its subscription model may be approaching a plateau, necessitating the development of additional revenue streams.
The last major redundancy round at Netflix occurred in 2022, when it cut about 450 jobs after losing subscribers for the first time in more than a decade.
Frequently asked questions
Netflix's last major round of layoffs occurred in 2022, following a period where the company lost subscribers for the first time in over a decade.
The layoffs primarily impact Netflix's human resources, legal, product, and technology teams.
Netflix stated that it is on track to meet its financial forecasts for the year.
What Happens Next
01Netflix reports third-quarter earnings on October 20.
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How It Developed
Netflix is laying off approximately 1,000 employees, marking its largest workforce reduction since 2022.
Netflix confirmed layoffs of about 1,000 staff, or 6% of its workforce, primarily in product, tech, legal, and HR departments.
Netflix will cut 1,000 jobs globally as the streaming giant faces competition from rivals, with the cuts mainly affecting its human resources, legal, product and technology teams.
