Netflix is cutting about 1,000 jobs, its largest layoff in four years, as the streaming group grapples with a declining share price and mounting pressure to boost engagement on its platform. The cuts, equivalent to about 6 per cent of its global staff, will primarily impact employees in Netflix’s product, technology, legal and human resources divisions. In an internal memo viewed by the FT, Netflix co-chief executives Ted Sarandos and Greg Peters told staff the company needed to be more “disciplined”. “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 wrote.
The cuts come as Netflix faces rising questions about whether it can sustain its rapid growth. The company’s stock has dropped more than 40 per cent in the past year, as investors worry about slowing engagement. Its failed attempt to acquire Warner Bros Discovery prompted concern that it did not have enough strong content of its own.
Sarandos acknowledged the challenges at a Bloomberg conference last month. “Overall, we’re not growing as fast as I want us to, and we’re working on making that move faster,” he said. Netflix has been experimenting with new programming to try to get subscribers to spend more time on its service, expanding into live sports, video podcasts and shows featuring You Tube creators. Investors have been disappointed with the company’s film and television slate, despite Netflix regularly notching multiple shows at the top of Nielsen’s most-viewed streaming titles.
The company has not had a hit that has broken through to audiences in 2026 in the same way Stranger Things, Squid Game or Wednesday have in recent years. Despite spending enormous sums to attract top directors and actors, its straight-to-streaming approach has often meant Netflix’s movies fail to become cultural events that draw in new subscribers. Hollywood’s success at the box office this summer, with Spider-Man: Brand New Day and The Odyssey both raking in more than $1bn globally, underscored the enduring power of the big screen and its ability to command audiences’ attention.
Netflix has started to shift its distribution model, wagering theatrical releases can help establish its platform as a destination for tent-pole films. The company plans to release Greta Gerwig’s Narnia in cinemas worldwide in 2027, breaking with its long-held model of releasing movies directly on its streaming service. The job cuts come a week before Netflix is due to report quarterly earnings.
Sarandos and Peters told employees the company was still on track to meet its full-year financial forecast. The last time Netflix announced significant lay-offs was 2022, after reporting its first quarterly decline in subscribers in more than a decade, a shock that prompted a sweeping reassessment of both its business strategy and the streaming model across Hollywood.
Source: Financial Times Companies · Summarized by HeadlinesBriefing