Netflix announced on Wednesday it will lay off approximately 1,000 employees, representing 6% of its global workforce, according to a memo to staff obtained by multiple outlets. The cuts will primarily affect the company’s product, technology, legal, and human resources departments, co-CEOs Ted Sarandos and Greg Peters stated in the internal communication.
The company emphasized that its business remains strong and growing, with leadership noting they remain on track to deliver full-year forecasts. Sarandos and Peters added that the layoffs are part of a strategy to reinvest aggressively in high-impact areas to improve service and drive innovation. The memo did not provide additional details beyond the executives’ statements.
Netflix, which employs roughly 16,000 full-time workers, last conducted large-scale layoffs in 2022. The latest cuts come as the company faces declining engagement and slowing growth, despite maintaining profitability. The company’s shares have fallen nearly 43% over the past 12 months, trading at just below $70 as of Wednesday.
To counter stagnating viewership, Netflix has expanded into live sports, documentaries, and video games, while also introducing a cheaper, ad-supported tier and cracking down on password sharing. However, analysts note the company has struggled to replicate the cultural impact of past hits like “Stranger Things” and “Squid Game.”
The layoffs were first reported by The Wall Street Journal and confirmed in memos obtained by CNBC, CBS News, and Just The News. Netflix is scheduled to release its quarterly earnings on October 20. The company did not respond to requests for further comment beyond the executives’ memo.