Netflix layoffs: Streaming giant to cut 1,000 jobs globally amid slow growth and declining user engagement

Netflix is planning to cut approximately 1,000 jobs worldwide, representing around 6% of its workforce, in its largest round of layoffs since 2022. The move comes as the streaming giant faces slowing growth and challenges in keeping customers engaged with its platform. Co-Chief Executive Officers Greg Peters and Ted Sarandos informed employees about the job cuts in an email sent on Wednesday morning. Most of the affected positions are expected to be across the company's product, technology, legal and human-resources departments.

“Our mission, to entertain the world, is ambitious, and delivering on it requires us to be disciplined about where we prioritize our people and resources,” they told employees. The company has been exploring several strategies to increase subscriber engagement and encourage users to spend more time on its platform. These initiatives include introducing live programming channels, bundling its service with other streaming platforms, adding video podcasts and shows from YouTube creators, and expanding its offerings of live sports and events.

Despite these efforts, Netflix continues to face concerns about slowing customer engagement. However, its subscriber retention remains among the strongest in the industry. According to Antenna, the company's customer defection rate in the United States stands at just over 2%. Meanwhile, Netflix shares have declined by more than 40% over the past 12 months, adding to investor concerns about the company's growth prospects. Netflix is also part of a broader trend of workforce reductions across the technology and entertainment industries.

Disney and Amazon.com have both significantly reduced their employee head counts in recent months. In their message to employees, Peters and Sarandos emphasized that the company would continue prioritizing strategic investments while restructuring parts of its workforce. Peters and Sarandos said that Netflix will continue to invest aggressively in high-impact areas but that doing so means making focused choices across the business so we can keep delivering for our members, partners, employees and investors.

The layoffs come just one week before Netflix is scheduled to release its next quarterly earnings report. Despite the planned job cuts and market concerns, the co-CEOs said the company remains on track to achieve its full-year earnings forecast. Netflix's latest restructuring also recalls its previous major round of layoffs in June 2022. At that time, the company had recently reported its first quarterly subscriber loss in more than a decade, raising concerns about its ability to sustain growth in an increasingly competitive streaming market.