Job cuts at Netflix

Netflix is eliminating 1,000 jobs, or about 6% of its workforce, mainly in production, technology, human resources, and legal departments. The move was announced in an internal memo obtained by CNBC, with co-CEOs Ted Sarandos and Greg Peters citing the need to "make targeted choices" to preserve value for subscribers and investors.

Slower growth prompts changes

Netflix’s co-CEOs acknowledged in a conference in September 2026 that the company is not growing as quickly as it once did. This has led to a strategic shift, with the upcoming quarterly results on October 20, 2026, expected to provide more clarity on the company’s current trajectory.

Stagnation in viewing time

Viewing time on Netflix has stopped increasing, and new subscribers are largely coming from efforts to curb password sharing and the introduction of ad-supported tiers. This suggests a decline in organic growth, which was once driven by the platform’s strong content appeal.

Lack of blockbuster content

Netflix has struggled to produce blockbusters like Stranger Things or The Crown, which once significantly boosted subscriptions. Despite diversifying its content, no recent show has generated widespread excitement, raising concerns about the platform’s ability to attract new viewers.

Strategies under scrutiny

Efforts to combat account sharing and introduce ads have helped maintain subscriber numbers but may not be sustainable. These tactics risk degrading the user experience, while repeated price hikes threaten to alienate existing customers and reduce loyalty.

Focus on cost-cutting

The layoffs are aimed at reducing expenses to reassure shareholders, but they do not address the lack of organic growth. The internal memo from the co-CEOs claims the company remains on track to meet its annual forecasts, though this contrasts with the job cuts and reduced investment in innovation.

Risks to future creativity

By cutting jobs in departments that do not directly generate revenue, Netflix risks weakening its capacity for innovation. This approach, similar to that of other companies like Disney, could compromise the company’s long-term ability to create content that attracts new audiences.

Future growth uncertain

Netflix faces increasing competition from platforms like YouTube and merged services such as Skydance with Paramount+. To compete, the company needs to produce globally appealing content, but recent layoffs may signal a shift toward cost-cutting over bold innovation. The financial results due on October 20, 2026, will be crucial in determining whether Netflix can reverse its current trajectory.