Netflix said it will cut 1,000 jobs across the globe, with the reductions primarily hitting human resources, legal, product and technology teams. The company said this represents the steepest cuts since 2022 and amounts to roughly 6% of its total workforce. Co-chief executives Ted Sarandos and Greg Peters told staff the company would remain focused on investing in areas that drive growth and innovation.
The job cuts come as Netflix faces mounting pressure from competitors. The streaming industry is undergoing consolidation following Paramount's £83.6bn merger with Warner Bros, owner of HBO. Free platforms such as YouTube and TikTok continue to attract viewers away from paid services. Sarandos previously told the Bloomberg Screentime summit that Netflix was "not growing as fast as I want us to".
The cuts signal challenges in Netflix's business model. According to analysis from eMarketer, the company has struggled to develop significant new revenue streams beyond subscriptions. While Netflix has expanded into gaming and advertising, these have not generated major income. Analysts suggest the subscription business may be approaching saturation, making diversification essential for future growth.
Netflix said it remains on track to meet its financial forecasts ahead of results due on 20 October. The company continues to commission shows, with its underwater mystery series "Below" among its most popular titles. Managers will inform affected employees of job cuts soon.