Netflix will cut 1,000 jobs globally, its steepest cuts since 2022. The company says it is on track to meet its financial forecasts and is due to report results on 20 October.
Netflix said it will cut 1,000 jobs globally as the streaming giant faces competition from rivals. The reductions equate to around 6% of its total workforce and mainly affect human resources, legal, product and technology teams.
Managers will tell employees soon whether their job has been cut. In an email to staff, co-chief executives Ted Sarandos and Greg Peters said Netflix would continue to invest aggressively in high-impact areas to improve its service and drive growth and innovation. The email added that the firm was on track to meet its financial forecasts.
Sarandos says growth is slower than he wants
Last month, Sarandos told the Bloomberg Screentime summit that Netflix was "not growing as fast as I want us to". Free platforms such as YouTube and TikTok continue to attract viewers, and the industry is going through a period of consolidation following Paramount's $110bn merger with Warner Bros. Netflix had come close to its own deal with Warner Bros but was outbid in the end by Paramount.
Investors have been weighing up user engagement, the amount of time customers spend on Netflix, as it competes with those platforms. Netflix has also been trying to expand into gaming and into advertising before and during shows and films.
Analyst points to a revenue gap
Ross Benes, senior analyst at eMarketer, said Netflix has not been able to find another line of major revenue. He added that the company remains reliant on a subscription business that could be approaching a plateau.
The last major redundancy round at Netflix came in 2022, when it cut about 450 jobs after losing subscribers for the first time in more than a decade.
Source: BBC News
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