Netflix to Cut About 1,000 Jobs in Largest Layoff Round Since 2022 Ahead of Earnings
Netflix, Inc. (NASDAQ:NFLX) announced plans to eliminate approximately 1,000 positions, representing about 6% of its workforce. Co-Chief Executive Officers Ted Sarandos and Greg Peters detailed the job cuts in a memo to staff, marking the company's largest round of layoffs since 2022. The reductions will primarily affect employees across product, technology, legal, and human resources divisions.
The cost-cutting move comes as the streaming provider faces slowing user engagement, which grew just 2% during the first half of the year. Shares of Netflix have declined roughly 20% this year and are down more than 40% over the past 12 months amid stiffer competition. Wall Street analysts have recently lowered price targets on the stock, citing concerns over softer margin expansion and weaker subscriber engagement.
Investors will look for further clarity when Netflix reports its third-quarter financial results on Oct. 20 after the market close. Analysts anticipate earnings per share of 82 cents on $12.88 billion in revenue, slightly above management's revenue guidance of $12.86 billion and a projected operating margin of 33.2%.
Key points
- Netflix, Inc. is reducing its workforce by about 1,000 positions, or roughly 6% of its total employees.
- The workforce reductions mainly target roles in the product, technology, legal, and human resources departments.
- This action marks the company's largest series of job cuts since 2022, when it reduced staff by about 3%.
- The streaming firm is scheduled to report third-quarter financial results after market close on Oct. 20.
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How we writeDisclaimerQuestions and answers
How many jobs is Netflix cutting?
Netflix is cutting about 1,000 jobs, which equals roughly 6% of its workforce. Most of the affected roles are in product, technology, legal, and human resources teams.
When does Netflix report Q3 earnings?
Netflix is scheduled to release its third-quarter earnings report after the market closes on Oct. 20. Analysts expect earnings per share of 82 cents on revenue of $12.88 billion.
Why is Netflix laying off employees?
Co-CEOs Ted Sarandos and Greg Peters stated that the company needs disciplined resource allocation to meet its goals, coming amid slowing engagement growth and stock performance pressures.