Netflix will lay off around 6% of its workforce, equivalent to almost 1,000 positions, as the streaming giant makes broader “organizational” changes.
Co-CEOs Greg Peters and Ted Sarandos announced the cuts in a memo to employees on Wednesday. They indicated that the company’s product, technology, legal and human resources teams would be most affected.
“Decisions like these are never easy, and we do not take them lightly,” Peters and Sarandos wrote in the memo, obtained by The Associated Press.
They maintained that business was strong, but that Netflix needed to be “disciplined about where we prioritize our people and our resources” while investing in future growth and “high-impact areas to improve our service.”
Beyond the memo, Netflix declined to comment further.
Between membership additions and price increases, Netflix’s profits have grown this year. In its fiscal second quarter, the company earned $3.4 billion and posted revenue of $12.56 billion, up 9% and 13%, respectively, from the same period last year.
Still, Netflix’s third-quarter forecast fell short of expectations. Wall Street. The company plans to report those results next week.
Competition in the streaming space is generally becoming more crowded. Netflix remains a dominant player (accounting for 19% of the market according to the latest data from streaming guide JustWatch), but rivals such as Amazon’s Prime Video and Disney+ are hot on its heels.
HBO Max and Paramount+ are also now under the same roof — Skydance — after Paramount’s $81 billion purchase of Warner Bros. Discovery closed last week. The new giant of Hollywood plans to unify its streaming products “into a single service over time.” Netflix initially struck a deal to buy the studio and Warner’s streaming business late last year, but backed out of that offer in February.
Netflix had, at the end of 2025, according to regulatory filings, about 16,000 full-time employees worldwide. The layoffs announced Wednesday mark the largest round of cuts the California-based company has implemented in years.
The Wall Street Journal first reported the layoffs.
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The Netflix logo on the company’s website in New York on February 2, 2023. (AP Photo/Richard Drew)
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This story was translated from English by an AP editor using a generative artificial intelligence tool.
Source: www.independentespanol.com
