Netflix to cut about 1,000 jobs as share price slides more than 40% in a year

Netflix plans to lay off about 1,000 employees worldwide — roughly 6 percent of its total workforce — in what would be its largest round of job cuts since 2022.

The Wall Street Journal and Reuters reported Wednesday (local time) that the cuts will affect staff in product development, technology, legal and human resources.

Co-CEOs Greg Peters and Ted Sarandos told employees in an email that morning that "our mission to entertain the world is an ambitious one, and achieving it requires rigorous judgment about where we prioritize our people and resources."

The sweeping restructuring comes as users are spending less time watching content on the platform and competition with rival streaming services has intensified.

While Netflix's subscriber churn rate remains among the lowest in the industry in the United States, weakening user engagement has left the company under pressure to find new growth drivers.

Netflix has been moving quickly to expand its offerings and keep subscribers on the platform longer. The company has introduced a live television channel, pursued bundling deals with other streaming services, and added video podcasts and content from YouTube creators. It has also stepped up live coverage of sporting events and other major occasions.

Even so, the company has struggled to hold its share of viewing time as competition stiffens from video streaming platforms such as YouTube and TikTok.

Against that backdrop, the company's share price has slid more than 40 percent over the past year.

With the company set to report its quarterly earnings next week, management said it expects to meet its full-year earnings outlook for this year.