Netflix announced Wednesday that it will cut roughly 6% of its workforce, amounting to about 1,000 positions, according to an internal memo obtained by CNBC. The reductions will primarily hit the product, technology, legal, and human resources divisions.
In an email to staff, co-CEOs Ted Sarandos and Greg Peters said Netflix’s mission to entertain the world is ambitious and requires discipline about where the company directs its people and resources. They described the business as strong and growing, and said Netflix remains on track to meet its full-year forecast. The company will continue to invest heavily in high-impact areas to improve its service and drive further growth and innovation, they added.
The memo also noted that Netflix must make focused choices across its operations so it can keep delivering for members, partners, employees, and investors. A Netflix spokesperson declined to comment beyond the co-CEOs’ message. The company is scheduled to report quarterly earnings on Oct. 20.
The layoffs come just weeks after Sarandos said at the Bloomberg Screentime conference that Netflix was “not growing as fast as I want.” The streaming giant has been navigating a paradox: it remains highly profitable and the largest player in streaming, but its viewing time has stalled. Recent subscriber gains have been driven mainly by its password-sharing crackdown and the launch of a cheaper, ad-supported tier.
Competition is also heating up. YouTube remains a major threat, while Skydance looms on the horizon—the combined Paramount and Warner Bros. Discovery entity plans to merge their streaming platforms, Paramount+ and HBO Max. Netflix has broadened its content slate in recent years, moving into live sports, documentaries, and video games to capture more consumer attention. Still, it has lacked the water-cooler hits like “Stranger Things” and “Squid Game” that previously fueled subscriber growth and viewership.
Netflix is not the only media company trimming costs. Last month, Disney said it would lay off about 300 employees, with most of the cuts affecting human resources and technology roles.