'Slowed Growth' Netflix Cuts 1,000 Jobs... Largest Restructuring Since 2022

Netflix, the world's largest video streaming company, is cutting about 6% of its total workforce in response to slowing growth and a decline in user engagement.

The Wall Street Journal reported on the 14th (local time) that Netflix has decided to lay off approximately 1,000 employees worldwide.

This marks the company's largest restructuring scale since 2022.

Co-CEOs Greg Peters and Ted Sarandos explained in an email sent to employees that morning, "Our mission to entertain the world is an ambitious goal, and achieving it requires rigorous judgment on where to prioritize our headcount and resources."

They also added that the layoffs will mainly affect product development, technology, legal, and human resources departments.

As user engagement has weakened recently—such as a decrease in the amount of time subscribers spend watching content—Netflix has been exploring various ways to increase viewing time.

While introducing live broadcast channels and pushing for bundle products with other streaming services, the company has also added video podcasts and content from YouTube creators to its service.

It is also actively pursuing live broadcasts of sports games and various events.

Although Netflix's churn rate among US subscribers remains among the lowest in the industry, it has been facing difficulties due to a slowdown in revenue growth and a drop in viewing share driven by intensifying competition with rival platforms like YouTube.

Amid such growth concerns, its stock price has plummeted by more than 40% over the past year.

This round of layoffs comes a week ahead of Netflix's quarterly earnings release.

However, the management maintained its previous stance that it will be able to achieve its annual performance outlook for this year.

(Photo: Getty Images)
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