Netflix to cut around 1,000 staff as part of resource optimisation

Major changes to staffing structure

Netflix is preparing to implement a plan to cut approximately 1,000 employees. This number represents roughly 6% of the platform's total workforce. For the company, this will be the largest staff reduction since 2022.

Variety reports this, citing an internal memo from Netflix co-CEOs Ted Sarandos and Greg Peters.

Management's rationale for the decision

In a letter to employees, top executives explained that such steps are necessary for the more rational use of the company's human and financial potential. Management emphasised the importance of clearly defining priority development areas.

«Наша місія — розважати весь світ — амбітна, і для її виконання нам необхідно дисципліновано підходити до розподілу кадрових і фінансових ресурсів, визначаючи пріоритетні напрями. Наш бізнес стабільний і продовжує зростати, і ми, як і раніше, розраховуємо повністю виконати річний фінансовий прогноз. Ми продовжимо активно інвестувати в найперспективніші напрями, щоб покращувати наш сервіс, стимулювати зростання та впроваджувати інновації» (Our mission to entertain the world is ambitious, and to achieve it, we need to approach the allocation of human and financial resources with discipline, identifying priority areas. Our business is stable and continues to grow, and we still expect to fully meet our annual financial forecast. We will continue to invest actively in the most promising areas to improve our service, drive growth, and implement innovations), noted Ted Sarandos and Greg Peters.

Which departments will be affected by the reforms

According to the data, the cuts will affect several key units of the company. These include:

• product development departments;
• the technology department;
• the legal department;
• human resources management.

Management stressed that the goal of these measures is to increase the efficiency of the company's resource utilisation.

Context of previous cuts

The last large-scale staff reduction at Netflix took place in 2022. At that time, the company cut around 450 employees against the backdrop of observed subscriber losses. Currently, however, despite the new reduction, Netflix states that its business is stable and that it is maintaining its annual financial forecasts.