Netflix announced on Wednesday that it will reduce its workforce by approximately 1,000 employees, representing about 6% of its total staff. The reduction will primarily affect employees in the product, technology, legal, and human resources departments.
In a memo to staff, co-CEOs Ted Sarandos and Greg Peters described the decision as necessary to maintain disciplined resource allocation while advancing the company’s core mission. They stated that Netflix’s business remains strong and on track to meet full-year financial targets, and that the company intends to continue investing significantly in high-impact areas to enhance its service offerings and drive further expansion and innovation.
The timing of the announcement comes shortly before the company is scheduled to report quarterly earnings on Oct. 20. This move follows recent comments from Sarandos at the Bloomberg Screentime conference, where he acknowledged that Netflix was not achieving the growth rate he desired.
Netflix has faced mounting pressure in the competitive streaming landscape despite maintaining profitability and market leadership. The platform’s viewing engagement has plateaued in recent months, with recent subscriber gains primarily attributable to its crackdown on password sharing and the introduction of an advertising-supported subscription option. The company has also diversified its content portfolio to include live sports programming, documentaries, and video games as it competes for consumer attention in an increasingly crowded market.
Cost reduction measures have become commonplace across the media industry, with Disney announcing approximately 300 employee reductions in the previous month, similarly concentrated in technology and human resources functions.
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