Netflix to Eliminate Roughly 1,000 Roles in Its Largest Cut Since 2022

what happened

Netflix is reducing its workforce by about 6%, or roughly 1,000 positions, in the largest round of job cuts the streamer has carried out since 2022. GuruFocus, citing the Wall Street Journal, reported the move, which was disclosed in an internal message from co-CEOs Greg Peters and Ted Sarandos.

Most of the reductions will hit product, technology, legal and human resources departments. At the end of last year the company employed about 16,000 full-time staff. Shares were up 0.74% at 10:00 a.m. Eastern time.

The cuts come as Netflix extends beyond subscription revenue into advertising, live events and video games. The company also came up short in its pursuit of Warner Bros. Discovery's studio and streaming operations, which Paramount Skydance bought in a transaction worth about $110 billion that closed earlier this month. Netflix will publish third-quarter results on October 20.

why it matters

For investors the move signals an effort to hold down costs ahead of the October 20 earnings release, while the loss of the Warner Bros. Discovery assets shows how quickly consolidation is moving through media. The key question is whether the restructuring will support margins.

tags

instruments