Netflix to Cut 6% of Workforce as Growth Hits a “Red Light” Despite Strong Results
- Input
- 2026-10-15 04:17:50
- Updated
- 2026-10-15 04:17:50
According to CNBC on the 14th, local time, Netflix announced its layoff plans that day in an internal memo sent to employees. The restructuring is expected to focus on product development, technology, legal and human resources (HR).
Netflix co-CEOs Ted Sarandos and Greg Peters said in an email to employees, “To fulfill our mission of entertaining the world, we need to make tough choices about where to prioritize our people and resources.” They added, “Our business is growing robustly, and we expect to meet our full-year outlook,” and stressed, “We will continue to invest aggressively in key areas that drive growth and innovation.”
The cuts come just weeks after CEO Sarandos said at the recent Bloomberg Screentime conference, “The company isn't growing as quickly as I would like.”
Netflix continues to hold the No. 1 position in the streaming market and generate solid profits, but viewing hours have stagnated. Growth in new subscribers has also relied mainly on cracking down on account sharing and introducing lower-priced ad-supported plans.
As competition with YouTube intensifies, the integration of the streaming platforms of Paramount Pictures and Warner Bros. Discovery is also emerging as a new threat. Netflix is expanding its business into areas such as live sports and gaming, but it is seen as lacking major hits like Squid Game and Stranger Things.
Restructuring is also spreading across the media industry. Disney announced last month that it would cut around 300 employees, mainly in human resources and technology.
Netflix is scheduled to report its quarterly results on the 20th.
[email protected] Lee Byung-chul, Special Correspondent Reporter