Netflix has initiated its largest workforce reduction to date, laying off over 1,000 employees, which represents approximately 6% of its total staff. The majority of these cuts will affect the company's product, technology, legal, and human resources teams.
In an internal email to employees, co-CEOs Ted Sarandos and Greg Peters stated, “Our mission — to entertain the world — is ambitious, and delivering on it requires us to be disciplined about where we prioritize our people and resources.” They added that the business remains strong and on track to meet its full-year forecast, emphasizing continued investment in high-impact areas to enhance the service and drive growth.
This round of layoffs comes as Netflix navigates a complex media landscape, attempting to meet audience demand while managing resources. The company recently announced a deal with Disney to license select content, aiming to broaden its library for its 325 million subscribers. This move follows announcements of its October streaming lineup, which includes new series and the second season of the anime series Cyberpunk: Edgerunners.
Netflix has also been exploring the gaming sector to increase user engagement. A notable entry was the GTA 6 Extended Look, which was exclusive to the platform for its initial release and garnered significant viewership. The company also released the soccer game FIFA World Cup: Launch Edition, though its developer reportedly laid off 85% of its staff in August. These developments follow Netflix's decision to increase its subscription prices earlier this year.
A Netflix spokesperson declined to comment further beyond the internal memo regarding the layoffs.