Netflix to Lay Off 1,000 Employees as Competition with YouTube Intensifies

Restructuring affecting about 6% of workforce
Largest cuts since 2022

Netflix, the world's largest video streaming company, will cut about 6% of its workforce. The move is seen as an effort to reduce costs and respond to slowing growth as competition with rival platforms such as YouTube intensifies.

According to The Wall Street Journal (WSJ) on Oct. 14 (local time), Netflix will lay off about 1,000 employees worldwide. The cuts represent about 6% of its total workforce and mark the company's largest restructuring since 2022. The cuts will mainly affect product development, technology, legal, and human resources.

In an email sent to employees that morning, Netflix co-CEOs Greg Peters and Ted Sarandos said, "Our mission to entertain the world is an ambitious one, and achieving it requires us to make rigorous decisions about where to prioritize our people and resources."

Slowing growth and weakening user engagement lie behind Netflix's decision to make large-scale cuts. Revenue growth is slowing even though its subscriber churn rate in the United States remains among the lowest in the industry.

Meanwhile, competition with rival platforms such as YouTube is intensifying, and Netflix's share of video viewing is also declining. As concerns about its growth prospects mount, Netflix shares have fallen more than 40% over the past year.

The restructuring was announced ahead of Netflix's quarterly earnings report.

This content was produced with the assistance of AI translation services.