Netflix to Cut About 1,000 Jobs, 6% of Workforce, in Largest Layoffs Since 2022

Netflix has begun its largest round of layoffs in four years, eliminating about 1,000 jobs, or 6% of its global workforce, the company confirmed on Wednesday. The cuts, announced in an internal memo from co-CEOs Ted Sarandos and Greg Peters, will hit the product, technology, legal and human resources teams hardest, according to reports from Variety, Deadline and The Hollywood Reporter. The layoffs come as Netflix faces slowing subscriber growth and rising competition from legacy media rivals and free, user-generated platforms such as YouTube and TikTok.

In the memo, Sarandos and Peters framed the cuts as a necessary step to keep the company disciplined about where it invests. The co-CEOs added that the business remains strong and on track to meet its full-year forecast, and that leaders would connect with impacted employees soon. The last major round of cuts at Netflix came in 2022, when the company eliminated about 450 jobs after losing subscribers for the first time in more than a decade.

The company had about 16,000 employees at the end of last year, according to The Guardian. Netflix shares, which are down about 25% so far this year, rose 0.7% on Wednesday following the announcement. The streaming giant is scheduled to report its third-quarter earnings on October 20, when it is expected to share more details about the restructuring.

Among the earliest names to emerge from the layoffs are several scripted television executives, including Director-level staff Lisa Lang McMullen, James Oh, Carolina Garcia and Andrew McQuinn, as well as managers Dan Evans, Jason Pan and Aaron Davidson, Deadline reported. The cuts reflect broader pressures on the streaming industry, which has seen consolidation following Paramount's $110 billion merger with Warner Bros. Discovery earlier this month. Netflix has been trying to diversify beyond subscriptions through an advertising tier, live programming and gaming, but analysts say it has struggled to find another major revenue stream.

At a Bloomberg Screentime summit last month, Sarandos acknowledged the growth challenge, saying, "Overall, we're not growing as fast as I want us to, and we're working on making that move faster." The company's viewing time has stagnated in recent months, even as it remains the biggest player in subscription streaming. Netflix has mostly avoided large-scale layoffs since 2022, though it has made adjustments on specific teams over time.