Netflix announced it will lay off approximately 6% of its workforce, equating to nearly 1,000 employees, according to a memo obtained by CNBC. The layoffs will primarily affect the product, tech, legal, and HR teams [1]. Co-CEOs Ted Sarandos and Greg Peters stated in the memo that the decision is part of a disciplined approach to prioritizing people and resources, emphasizing that the company's mission to 'entertain the world' requires focused choices [1].
Despite the job cuts, Netflix leadership asserted that the business remains strong and is on track to meet its full-year forecast. The company plans to continue investing aggressively in high-impact areas to enhance its service and drive further growth and innovation [1]. The memo also highlighted the need to make strategic decisions to continue delivering value to members, partners, employees, and investors [1].
The layoffs come just ahead of Netflix's scheduled quarterly earnings report on Tuesday. Last month, Sarandos noted at the Bloomberg Screentime conference that Netflix was 'not growing as fast as I want,' suggesting some internal pressure to accelerate growth [1]. Netflix declined to provide additional comments beyond the co-CEOs' memo [1].
CONCLUSION
Netflix's decision to lay off roughly 6% of its workforce signals a strategic shift to prioritize resources and drive growth, even as the company maintains confidence in its business outlook. The timing, just before the upcoming earnings report, underscores the company's focus on operational discipline amid slower-than-desired growth.