Netflix to cut about 1,000 jobs

Netflix (NFLX) is eliminating roughly 1,000 positions, about 6% of its global workforce, in a new round of layoffs described as its biggest since 2022. The company had about 16,000 employees at the end of last year, indicating the reductions affect a significant share of staff.

The move was communicated in an internal email from co-CEOs Greg Peters and Ted Sarandos. In the message, they said the company must be disciplined about where it prioritizes its people and resources while it pursues its strategic goals.

The job cuts will primarily impact the product, technology, legal and human-resources teams. These areas are central to Netflix’s (NFLX) platform development, corporate governance and internal operations, making the reductions notable across both technical and support functions.

Despite the scale of the layoffs, management emphasized that Netflix will continue to invest aggressively in high-impact areas. The company framed the changes as focused choices intended to support its mission and maintain momentum in growth and innovation.

In their memo, the co-CEOs reiterated Netflix’s mission to entertain the world and described it as ambitious, requiring careful allocation of people and capital. They said the company is making targeted decisions so it can keep delivering for members, partners, employees and investors.

Netflix stated that its business is strong and growing and that it remains on track to deliver its full-year forecast. The company did not provide additional public comments beyond the internal communication shared with employees.

On the day the layoffs were announced, Netflix shares rose about 0.7%. The stock reaction suggests investors responded without significant immediate concern over the changes.

The workforce reduction follows recent management remarks that the company was not growing as fast as desired. Netflix continues to post solid profits and remains a major player in streaming, but it has faced stagnating viewing time even as it pursues new ways to drive subscriber growth.

In recent periods, Netflix has focused on initiatives such as a cheaper, ad-supported tier and a crackdown on password sharing to support subscriber additions. At the same time, it has diversified its content into areas including live sports, documentaries and video games to capture more viewer attention.

The company’s latest staffing changes align with management’s stated intent to concentrate spending in areas viewed as most likely to advance its service and competitive position. The reallocation of resources, coupled with continued investment in growth initiatives, underpins Netflix’s confidence in its full-year outlook.