Netflix to cut 1,000 jobs in biggest layoffs since 2022

Netflix is under pressure to find new ways to increase revenue as competition for viewers intensifies, with the streaming company preparing to lay off around 1,000 employees in its largest workforce reduction since 2022.

The planned cuts will affect about 6% of its workforce, according to reports. Co-CEOs Greg Peters and Ted Sarandos informed employees on Wednesday that product development, technology, legal and human resources teams would bear the brunt of the reductions.

The executives said that Netflix needed to direct its staff and resources towards its main priorities. They maintained that the company was performing well and remained on course to meet its financial targets for the year.

The move comes as Netflix faces growing pressure to keep audiences engaged. YouTube and TikTok have attracted viewers with free videos created by users, giving them a different business model from Netflix's paid streaming service.

Investors are paying closer attention to how much time people spend watching Netflix, as concerns grow over whether the company can maintain the rapid expansion that disrupted the traditional television industry.

Ross Benes, a senior analyst at eMarketer, said Netflix had yet to establish another major source of revenue comparable to its subscription business. He suggested that the company might need to diversify further as growth in subscriptions approaches its limits.

Netflix has already taken steps in that direction by introducing an advertising-supported subscription tier and investing in live events and gaming. However, these businesses have yet to remove the company's reliance on subscriptions.

Its strategy has also faced questions following its unsuccessful attempt to acquire Warner Bros Discovery's studio and streaming assets earlier this year. Paramount completed its $110 billion acquisition of Warner Bros Discovery earlier this month, bringing the businesses together under Skydance.

Netflix's share price has fallen around 25% since the start of the year, although it gained 0.7% on Wednesday.