Netflix is cutting approximately 6% of its workforce, or around 1,000 jobs, in its largest round of layoffs since 2022, according to an internal memo reviewed by Reuters. The move comes as the streaming giant faces growing competition from established media companies and digital platforms such as YouTube and TikTok.
The majority of the job cuts are expected to affect Netflix’s product, technology, legal and human resources departments. In a message to employees, Co-CEOs Greg Peters and Ted Sarandos said the company must carefully prioritise its workforce and resources while pursuing its global entertainment ambitions.
Despite the layoffs, Netflix said its business remains strong and growing, with the company maintaining its full-year financial forecast. However, concerns about its ability to sustain growth have weighed on investor confidence, with its shares declining approximately 25% so far this year.
Competition for viewers has intensified as YouTube and TikTok attract audiences with free, user-generated content. Viewer engagement, measured by the amount of time users spend on the platform, has become an increasingly important concern for Netflix investors.
The company is also exploring new revenue streams beyond subscriptions, including advertising-supported plans, live programming and gaming. Analysts have raised questions about whether its traditional subscription model can continue delivering the same level of growth as the streaming market matures.
Netflix’s latest workforce reduction follows its previous major layoffs in 2022, when the company eliminated approximately 450 positions in two rounds after reporting its first subscriber decline in more than a decade. The latest cuts highlight the challenges facing the streaming industry as companies compete for audiences, manage costs and seek sustainable growth.
