Netflix is reportedly laying off 1,000 workers – the streaming giant’s biggest cuts since 2022.
Staff were told Wednesday that about 6% of the workforce – within product, tech, legal, and human resources teams – was being slashed, according to the Wall Street Journal.
“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,” top execs Greg Peters and Ted Sarandos were quoted as telling employees.
The company still has the most subscribers out of any other streaming service, with 325 million worldwide, but shares have fallen 40% percent in the past year. Netflix shastock res went up about 1% after the layoff news broke.
The TV and film disruptor has been struggling to keep audiences engaged. Bloomberg reported over the summer that the Netflix’s biggest shows were losing more than half of their viewers after just one season. The company has been trying to build up its portfolio by adding video podcasts and live shows.
Peters and Sarandos told employees that the streamer would “continue to invest aggressively in high impact areas,” according to the Journal. They said the company is on track to hit its earnings forecast.
As cutthroat competition between Netflix, Disney, Amazon, and Skydance intensifies, experts believe that streaming prices might go up as the field gets narrower.
“This is one of the most dynamic times in the history of entertainment,” Peters and Sarandos said.
The big streamers are facing some new hurdles, too.
A new group calling itself the American Entertainment Alliance said Thursday it was demanding legislation to make streaming companies give half of their original programming budgets to independent producers, the New York Times reported.
Netflix’s third-quarter revenues are set to come out next week. Revenues grew 13% in the second quarter, to $12.6 billion.
Netflix’s upcoming slate of projects includes a film from former indie darling Greta Gerwig called “Narnia: The Magician’s Nephew.”
On Tuesday, the company announced it got exclusive rights to broadcast the 2030 FIFA World Cup in Spain.
Netflix did not immediately respond to a request for comment.