Netflix is cutting its workforce by 6 per cent – the biggest reduction since 2022
The cuts will mainly affect the product, technology, legal and human resources departments, as part of a strategy to contain costs and reallocate investment
Netflix is set to cut around 1,000 jobs, equivalent to 6 per cent of its workforce, in its largest round of redundancies since 2022. The reorganisation, reported by Reuters based on an internal memo from co-CEOs Greg Peters and Ted Sarandos, comes at a time of growing competition to win over streaming audiences and a review of the group’s investment priorities.
It is reported that the majority of the cuts will affect the product, technology, legal and human resources divisions. In their message to staff, Peters and Sarandos are said to have emphasised the need to maintain discipline in resource management and prioritisation, whilst the company continues with its expansion plans in the entertainment sector.
The two managers are also reported to have reiterated that Netflix’s business remains strong and is growing, and that the group is on track to meet its financial forecasts for the full financial year.
The 2022 precedent
The latest round of staff cuts follows on from the restructuring programme launched in 2022, when a slowdown in revenue growth and the first loss of subscribers in over ten years had prompted the company to cut costs.
In May of that year, Netflix had made around 150 employees redundant, mostly in the United States, after reorganising its marketing operations and reducing the workforce of its in-house editorial platform, Tudum. This was followed in June by a second round of redundancies, with around 300 jobs cut, representing around 3 per cent of the workforce at the time.
