NETFLIX TO CUT ABOUT 1,000 JOBS IN LARGEST LAYOFFS SINCE 2022

Netflix is cutting about 6% of its workforce, roughly 1,000 positions, in its largest round of layoffs since 2022, according to an internal memo sent to employees on Wednesday and seen by news agencies. Co-chief executives Greg Peters and Ted Sarandos told staff that product, technology, legal and human resources teams would be most affected. In the memo, they said the company's mission "to entertain the world" required discipline "about where we prioritise our people and resources," while maintaining that the business remained "strong and growing" and on track to meet its full-year forecast. Netflix had about 16,000 full-time employees worldwide at the end of last year, according to regulatory filings. Netflix shares, which have fallen by around 25% this year according to market data, rose 0.7% on Wednesday.

The cuts come as Netflix faces competition for viewers from established rivals and from platforms such as YouTube and TikTok, which offer free, user-generated content. One analyst, Ross Benes of eMarketer, said Netflix had struggled to establish a major revenue stream beyond subscriptions and was nearing a ceiling on that business. Netflix reported second-quarter profit of $3.4 billion and revenue of $12.56 billion, up 9% and 13% respectively on the same period last year, though its forecast for the third quarter fell below Wall Street's expectations, with results due next week. The company has been investing in advertising, live programming and gaming to diversify its revenue. Netflix's last major layoffs came in 2022, when it cut about 450 jobs in two rounds following its first subscriber losses in more than a decade.

The layoffs follow a reshaping of the streaming industry, after Netflix walked away in February from a deal to buy Warner Bros Discovery's studio and streaming assets. Paramount completed its acquisition of Warner Bros Discovery this month, forming Skydance, which has said it plans to unify HBO Max and Paramount+ into a single service over time. Streaming guide JustWatch data cited by one report put Netflix's market share at 19%, with Amazon's Prime Video and Disney+ described as close competitors. The Wall Street Journal first reported news of the memo. Netflix said it would not comment further beyond the statement from its co-chief executives.