Netflix Confirms 1,000 Job Cuts in Biggest Shake-Up Since 2022

Netflix is eliminating roughly 1,000 positions worldwide, marking its largest round of layoffs in three years and touching about 6% of its entire workforce. The reductions will fall hardest on the company’s human resources, legal, product and technology divisions.

The move comes as the streaming giant navigates a fast-changing media landscape. A wave of consolidation is reshaping the industry following Paramount’s $110bn (£83.6bn) takeover of Warner Bros, the studio behind HBO — a deal Netflix itself had pursued before being outbid. Meanwhile, ad-supported platforms such as YouTube and TikTok keep pulling viewers away from traditional subscription services.

Speaking at the Bloomberg Screentime summit last month, co-chief executive Ted Sarandos acknowledged the pressure, saying the company was “not growing as fast as I want us to.”

Staff were notified of the cuts by email from Sarandos and fellow co-chief executive Greg Peters, who framed the decision as a matter of focus rather than retreat. “Our mission — to entertain the world — is ambitious, and delivering on it requires us to be disciplined about where we prioritise our people and resources,” they wrote. Employees were told managers would confirm individual job losses “soon,” and the company reiterated that it remains on track to hit its financial targets, with results due on 20 October.

Searching for growth beyond subscriptions

Behind the cuts lies a deeper strategic question: how Netflix keeps growing once subscriber numbers plateau. The company has leaned on new content — its current hit is the underwater mystery drama “Below” — alongside ventures into gaming and advertising inserted before and during programmes, in an effort to diversify revenue beyond subscriptions.

Analysts say those side bets have yet to pay off meaningfully. “They haven’t been able to find another line of major revenue,” said Ross Benes, a senior analyst at eMarketer, who argues the core subscription business is nearing its limits. “Eventually, because they’re nearing a ceiling with that, they’ll need another revenue stream to diversify, and that’s where it’s been more of a struggle,” he said.

Investors, meanwhile, are increasingly focused on engagement — how much time subscribers actually spend on the platform — as competition from YouTube and TikTok intensifies.

Netflix last cut jobs at this scale in 2022, when roughly 450 positions were eliminated after the company lost subscribers for the first time in more than a decade.

Source: BBC News