Netflix to Cut 1,000 Jobs

Netflix will cut about 1,000 jobs, representing roughly six per cent of its workforce, as the streaming giant faces slowing growth, according to United States media reports on Wednesday.

The company did not immediately respond to a request for comment from AFP.

In an internal memo cited by several US media outlets, co-chief executives Ted Sarandos and Greg Peters said the company needed to manage its workforce and resources carefully to sustain its ambition of entertaining audiences worldwide.

“Our mission — to entertain the world — is ambitious, and delivering on it requires us to be disciplined about where we prioritise our people and resources,” co-CEOs Ted Sarandos and Greg Peters wrote in an internal memo, according to several US media outlets.

Netflix remains the leading player in the video streaming market, but its growth has slowed compared with previous periods.

The company’s revenue increased by 13.4 per cent year-on-year in the second quarter, down from 16.2 per cent growth recorded in the first three months of the year.

Netflix has projected revenue growth of 11.7 per cent for the third quarter, which ended recently.

Media reports have also pointed to a decline in the time viewers spend on the platform following years of sustained growth. Bloomberg reported in early July that average viewership for a series tends to fall after its first season.

Emarketer analyst Ross Benes said the reported job cuts indicated that even major streaming companies were facing stagnation and financial pressures.

He noted that Netflix was expanding its sports-related workforce while reducing staff elsewhere, reflecting a growing focus on revenue rather than simply adding subscribers.

“Netflix’s layoffs show that even the top streaming companies are not immune to stagnation and financial difficulties,” Benes said. 

“While the company will expand its sports roles, it’s cutting back at a time when revenue matters much more than subscriber additions,” he said. “With pressure mounting, Netflix will look to turn the tide by getting a boost from low-cost content.”

Benes added that the company could increasingly turn to lower-cost content to support growth as financial pressures mount.

Netflix’s shares have fallen by 15 per cent since the beginning of the year.