Netflix to lay off roughly 1,000 employees

Netflix to lay off roughly 1,000 employees

Netflix plans to lay off 6% of its global workforce, or roughly 1,000 employees, in an effort to better position itself for future investments, its co-CEOs told employees Wednesday.

Why it matters: Co-CEO Ted Sarandos acknowledged last month in a Bloomberg interview that the company is not growing as fast as he would like.

Zoom in: The cuts are expected to mostly impact the company's business functions, including human resources, product, technology and legal teams, per a source familiar with the situation.

  • Despite the cuts, the company expects to meet investor expectations for its full-year financials.

    • What they're saying: In a note to staff obtained by Axios, Sarandos and co-CEO Greg Peters said meeting growth targets "means making focused choices across the business so we can keep delivering for our members, partners, employees, and investors."

  • "We know changes like this are tough, but let's stay focused. This is one of the most dynamic times in the history of entertainment - and it's a moment perfectly suited to a company like ours that's built at the intersection of technology and entertainment. Now it's on us to step up and meet the moment, together, like we always do."

    • The big picture: Netflix is still the most profitable streaming business among its competitive set, but its focus on streaming means its business isn't as diversified as other entertainment giants, who can offset a competitive streaming market with things like theme parks and products.

  • Netflix has invested heavily in games and it's starting to invest in live experiences, but its business is sill highly dependent on streaming subscriptions.