Netflix said it will cut 1,000 positions—roughly 6 % of its global staff—effective next month, after reporting a 13.4 % rise in Q2 revenue versus a 16.2 % jump in Q1. The decision comes as subscriber growth slows and average viewing time has begun to dip.
The Los Gatos, California‑based company warned that the lull follows a pattern where audiences drop after a series’ first season, and analysts forecast only 11.7 % growth for the just‑finished third quarter.
Co‑CEOs Ted Sarandos and Greg Peters emphasized in an internal memo that the layoffs are part of a broader strategy to prioritize people and resources, even as the firm expands its sports portfolio. They noted that disciplined spending is required to sustain long‑term profitability.
Market analysts point out that Netflix’s stock has slid 15 % since the start of the year, and the company plans to pivot toward low‑cost programming to regain momentum. Executives say the shift will be reviewed in the next quarterly earnings call, with a focus on balancing content spend and subscriber retention.
The company will implement the reductions on a phased schedule, with key roles eliminated first. A revised content strategy will be outlined in the upcoming investor briefing, which is slated for early October.