Netflix initiates major layoffs amid growth concerns

Netflix has launched a significant round of layoffs, cutting approximately 1,000 jobs, which represents about 6% of its workforce. This marks the company’s largest staff reduction in four years, following previous smaller cuts in 2022 and early this year.

Co-CEOs Ted Sarandos and Greg Peters communicated the decision to employees, citing the need to accelerate growth. The company is facing increased scrutiny from Wall Street following a more than 40% drop in its stock price over the past year. This decline is attributed to slower viewer engagement growth and intensifying competition from rivals such as Apple TV and HBO.

To combat these challenges, Netflix is shifting its content strategy to include more live events, sports, podcasts, and creator-driven content as it seeks to regain momentum.