Netflix Layoffs Underway, Streamer Cutting 1,000 Jobs, 6% Of Workforce

Netflix has initiated a major round of layoffs today, cutting about 6% of its global staff or some 1,000 jobs in its biggest round of job cuts in four years.

The cuts were expected as the company faces slower growth and competition.

Co-CEOs Ted Sarandos and Greg Peters unveiled the move in a memo to employees Wednesday.

“Decisions like these are never easy, and we don’t take them lightly. Our top priority today is to support those who are leaving Netflix. The process will vary somewhat by country, but leaders will be connecting with impacted employees soon. If you are leaving, please know that we will support you throughout this transition and make sure you have as much clarity and context as possible. We also want to say thank you. What you’ve built, and the care you brought to Netflix, have made a lasting difference and we will always be grateful, the CEOs said in the memo.

“For the rest of the team, we know you have questions, too. 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. Our business is strong and growing, and we remain on track to deliver our full- year forecast. We’ll continue to invest aggressively in high- impact areas to improve our service and further drive growth and innovation. Doing that means making focused choices across the business so we can keep delivering for our members, partners, employees, and investors,” the co-CEOs said.

The called the current moment in media “perfectly suited to a company like ours that’s built at the intersection of technology and entertainment. Now it’s on us to step up and meet the moment, together, like we always do.”

Netflix had not undergone significant layoffs since the big staff reduction of 2022, with the February product division cuts of several dozen employees among the most notable ones.

Today’s round is likely tied to the streamer’s stock dropping more than 40% over the past year as Wall Street has increasingly scrutinized its viewer engagement, which increased only 2% over the first half of the year.

Netflix’s co-CEO Ted Sarandos addressed the topic earlier this month at a Bloomberg conference. “Overall, we’re not growing as fast as I want us to, and we’re working on making that move faster,” he said.

Additionally, the streamer has gone through one of its longest draughts without a breakout new series that has captured the zeitgeist the way shows like Stranger Things, Squid Game, Bridgerton, Queen’s Gambit, Wednesday, Baby Reindeer, and, most recently Adolescence, did. Netflix also is coming off a rare third-place finish at the Emmys behind rivals Apple TV and HBO.

Interest in Netflix’s existing series is showing signs of waning too, with many returning series posting season-to-season viewership declines.

The streamer has been shifting strategy by leaning into live events, including sports, podcasts and creator-driven content