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Global streaming giant Netflix plans to lay off about 1,000 employees as part of a restructuring of its workforce. Co-CEOs Ted Sarandos and Greg Peters said in an official email to staff that the cuts would mainly affect the human resources, legal, product development and technology departments.
The Operative Information Center-OMM reports that company executives stressed Netflix’s ambitious mission in the global entertainment market, saying the company needed to adopt a more disciplined and efficient approach to allocating its workforce and resources to meet its strategic goals. Employees affected by the cuts will be notified officially in the coming weeks, the company said.
The move comes as consolidation accelerates across the media and entertainment sector and digital platforms such as YouTube and TikTok intensify competition for audience attention. The process has gathered pace in particular following a reported $110 billion deal between a Paramount consortium and Warner Bros., the parent company of the HBO brand.
Speaking at the Bloomberg Screentime summit last month, Sarandos acknowledged that Netflix had not fully delivered the growth rates it had hoped for. Netflix has also reportedly held talks to acquire Warner Bros. assets but fell behind Paramount’s offer over financial terms.
Financial analysts and investors are closely monitoring user engagement at Netflix. The company has entered the video game sector and begun offering ad-supported subscription plans as it seeks to diversify its revenue streams.
Leading analyst Ross Benes says Netflix has yet to develop a major source of revenue beyond subscription fees and remains reliant on a traditional subscription model that is nearing saturation. In his view, the main challenge is creating new monetization channels as subscription revenue approaches its ceiling.
Netflix is expected to release its third-quarter financial results on October 20. The company last carried out comparable mass layoffs in 2022, after recording its first subscriber loss in a decade, when it parted ways with about 450 employees.
