Netflix to shed 1,000 jobs in steepest cuts since 2022 — SkimNews
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- Netflix will cut 1,000 jobs globally, the steepest reduction since 2022, affecting mainly HR, legal, product, and technology teams and equating to roughly 6% of its total workforce.
- Co-CEOs Ted Sarandos and Greg Peters told staff via email the company would "continue to invest aggressively in high-impact areas" and said Netflix is on track to meet its financial forecasts, with managers notifying affected employees "soon."
- Sarandos told the Bloomberg Screentime summit last month the company was "not growing as fast as I want us to," a backdrop the executives cited for the reorganization.
- Paramount completed a $110bn (£83.6bn) merger with Warner Bros, owner of HBO, intensifying industry consolidation; Netflix had bid for Warner Bros itself but was outbid by Paramount.
- eMarketer senior analyst Ross Benes said Netflix "hasn't been able to find another line of major revenue" and remains reliant on a subscription business "nearing a ceiling," even as it pushes into gaming and ad-supported tiers.
- Netflix last carried out a major redundancy round in 2022, cutting about 450 jobs after losing subscribers for the first time in over a decade.
- Investors are weighing user engagement metrics as Netflix reports latest results on 20 October; its current most popular commission is "Below," an underwater mystery series.
Why it matters: A 6% workforce reduction after Sarandos's own admission of slowing growth signals that Netflix's subscription model — the engine that rescued it from the 2022 subscriber losses — may be plateauing. With Paramount swallowing Warner Bros and Netflix shut out of that deal, the company has yet to land a major new revenue line, meaning 1,000 workers bear the cost of a search for the next growth engine that hasn't yet materialized.
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