Netflix, the world's largest video streaming service, will cut about 6% of its global workforce to counter slowing growth and declining viewer engagement.
The Wall Street Journal reported on the 14th that Netflix will eliminate roughly 1,000 positions worldwide. It is the company's largest restructuring since 2022.
Co-Chief Executives Greg Peters and Ted Sarandos announced the decision in an email to employees that morning, saying their mission to entertain the world is an ambitious goal that requires rigorous judgment about where to prioritize people and resources. The cuts will fall mainly on product development, engineering, legal and human resources, according to the report.
Netflix has been exploring ways to increase viewing time as engagement has weakened, with subscribers spending less time watching content.
The company has introduced live broadcast channels and pursued bundled offerings with other streaming services, while adding video podcasts and content from YouTube creators. It has also moved aggressively into live coverage of sports events and other programming.
Netflix maintains one of the industry's lowest subscriber churn rates in the U.S., but it is struggling with slowing revenue growth and a declining share of viewing time amid intensifying competition from platforms such as YouTube. Those concerns about growth have driven the stock down more than 40% over the past year.
The job cuts come a week before Netflix reports quarterly earnings. In July, the company posted second-quarter revenue of $12.56 billion (about 18.6 trillion won), up 13.4% from a year earlier and slightly below the market consensus of $12.59 billion. Netflix has guided for third-quarter revenue of $12.86 billion (about 19.04 trillion won).