Netflix is cutting roughly 1,000 employees — about six per cent of its workforce — in its largest staff reduction since 2022, as co-chief executives Ted Sarandos and Greg Peters tell staff the streaming giant must be “disciplined about where we prioritize our people and resources.” The cuts land just days before the company reports third-quarter earnings on October 20.
The memo’s message
In a memo to employees, Sarandos and Peters said the business remains strong and on track to deliver its full-year forecast, while pledging continued heavy investment in areas expected to drive growth and innovation. “Our business is strong and growing, and we remain on track to deliver our full year forecast,” the pair wrote. The cuts will hit product, technology, legal and human-resources teams hardest, according to reports, with managers expected to inform affected staff in the coming days. Decisions of this kind, the co-CEOs acknowledged, are never easy.
A growth story under pressure
The layoffs come weeks after Sarandos admitted the company was “not growing as fast as I want,” a comment that carried weight from a leader whose company still dominates streaming. Viewing time has stalled in recent months, and recent subscriber growth has leaned on the password-sharing crackdown and the cheaper ad-supported plan rather than organic viewing. The stock is down more than 40 per cent over the past twelve months, according to reports, and the company’s biggest threat remains YouTube. Netflix’s push into live sports, documentaries and video games now unfolds as sports rights become the most contested battleground in streaming — and as consolidation around the Skydance-led combination of Paramount+ and HBO Max reshapes the competitive map.
The reductions come one week before the quarterly results, when executives are expected to share more about where the company is heading next. Netflix has also expanded into live television channels, sports programming, video podcasts and shows produced by YouTube creators, alongside distribution partnerships and streaming bundles aimed at attracting and retaining customers. Despite those initiatives, the company’s shares have declined more than 40 per cent over the past twelve months amid concerns about slowing growth, according to reports.
