Netflix is to cut roughly 1,000 jobs, equivalent to about 6% of its workforce, in reductions that will mainly affect its product, technology, legal and human resources teams.
The streaming company announced the plans in a memo to staff from co-chief executives Ted Sarandos and Greg Peters. They said Netflix’s business remained strong and growing, and that it was still on track to meet its full-year forecast.
“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,” the executives wrote.
They added that Netflix would continue to invest aggressively in areas they considered likely to have the greatest impact, while making “focused choices” across the business to support members, partners, employees and investors.
The company is due to report its quarterly earnings on October 20. The job losses come weeks after Mr Sarandos said Netflix was “not growing as fast as I want” at the Bloomberg Screentime conference.
Netflix continues to report solid profits and remains the largest player in streaming, but its viewing time has stagnated. Subscriber growth has been driven largely by its crackdown on password sharing and the launch of a cheaper, advertising-supported tier.
The company has expanded beyond its traditional streaming offering into live sport, documentaries and video games as it competes for consumers’ attention. However, it has recently lacked major hits comparable with Stranger Things and Squid Game, which previously lifted viewing and subscriber numbers.
Netflix also faces competition from YouTube, while the combined Paramount and Warner Bros Discovery entity, Skydance, plans to integrate Paramount+ and HBO Max.
The cuts follow similar cost reductions elsewhere in the media industry. Disney said last month that it would eliminate about 300 jobs, with most of those roles in human resources and technology.
