Overview
- Company co-CEOs Greg Peters and Ted Sarandos announced in an internal email that Netflix will reduce roughly 6% of its staff, a move Variety published and the company framed as prioritization.
- Based on a reported headcount of about 16,000 employees, the reduction would likely total roughly 1,000 jobs and will affect human resources, legal and technology teams.
- Executives said the company will continue to fund high-growth areas, describing the layoffs as a way to sharpen focus and control operating costs in the face of slower growth.
- The move comes as industry competition intensifies after Paramount’s bid involving Warner and HBO Max reshaped the rival landscape and after Netflix signaled slower customer growth.
- Investors will be watching Netflix’s upcoming quarterly results for signs of how the cuts affect costs and content investment and for signals about the company’s longer-term strategy.