New Delhi: Netflix told employees on Wednesday that it will lay off roughly 1,000 people, about 6% of its workforce. Most of the cuts will fall on product, technology, legal and human resources teams, according to a company email.
The company had about 16,000 full-time employees at the end of last year, according to its annual filing. Variety describes it as the largest round of layoffs in Netflix’s history. Other outlets frame it as the biggest since 2022, when the company cut 450 jobs over two rounds after losing subscribers.
Co-CEOs Ted Sarandos and Greg Peters explained the decision in a memo. They wrote that delivering on Netflix’s mission requires discipline about where it puts its people and resources. They also tried to calm investors, saying the business is strong and growing and remains on track to hit its full-year forecast. Netflix told TechCrunch it will keep investing aggressively in high-impact areas.
That reassurance sits awkwardly next to something Sarandos said a few weeks ago. At Bloomberg’s media conference late last month, he admitted Netflix isn’t growing as fast as he wants. Axios noted that Netflix is still the most profitable streaming business among its rivals, but it depends heavily on subscriptions and lacks the theme parks and merchandise that cushion bigger entertainment companies.
The cuts also follow a failed bid. Netflix lost a drawn-out fight for Warner Bros. Discovery’s streaming and studio businesses to Paramount Skydance earlier this year. The deal would have given it HBO, a large studio operation and more. Without it, the company has to find growth on its own.
Some of the pain has already been felt. Variety reports that Netflix made smaller cutbacks earlier this year, including in its global product team, and that film division VP Doug Belgrad is among those caught in the latest round. The company’s leadership structure has changed as well. Elizabeth Stone was promoted to chief product and technology officer in February, after former product chief Eunice Kim left in September.
Netflix has been pushing into new territory to hold viewers’ attention. Recent efforts include live sports and licensed video podcasts, such as those from Bill Simmons’ The Ringer. Whether that is enough to offset slower growth is the open question, and the numbers should shed some light soon. Netflix is scheduled to report third-quarter results on Tuesday.
Netflix hasn’t said which specific roles or regions are affected, and it hasn’t detailed severance or support for departing staff. Those answers may come with the earnings report, or they may not.
