Netflix to shed 1,000 jobs in steepest cuts since 2022 — SkimNews
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- Netflix is cutting 1,000 jobs globally, the steepest reduction since 2022, hitting mainly its HR, legal, product, and technology teams and equating to roughly 6% of total workforce
- Co-CEOs Ted Sarandos and Greg Peters emailed staff saying it would "continue to invest aggressively in high-impact areas" while reprioritizing resources to deliver on its mission to "entertain the world"
- Sarandos told the Bloomberg Screentime summit last month Netflix was "not growing as fast as I want us to," with managers set to notify affected employees "soon"
- The cuts come as the streaming industry consolidates following Paramount's $110bn (£83.6bn) merger with Warner Bros (owner of HBO); Netflix was itself outbid by Paramount in a separate pursuit of Warner Bros
- Ross Benes, senior analyst at eMarketer, said Netflix "hasn't been able to find another line of major revenue" and warned its subscription business may be "approaching a plateau" despite forays into gaming and ad-supported tiers
- The last major redundancy round was in 2022, when Netflix cut about 450 jobs after losing subscribers for the first time in more than a decade; the company says it remains on track to meet financial forecasts due 20 October
- Netflix's most popular current commission is "Below," an underwater mystery series, while investors continue to weigh user engagement against free-platform rivals YouTube and TikTok
Why it matters: Roughly 6% of Netflix's global workforce faces imminent notification, with HR, legal, product, and tech roles most exposed. For investors, the move validates eMarketer's Ross Benes's warning that the subscription model may be hitting a ceiling — Netflix is cutting costs while still struggling to land a major new revenue line beyond ads and gaming.
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