Netflix to lay off roughly 1,000 employees
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Netflix plans to lay off 6% of its global workforce, or roughly 1,000 employees, in an effort to better position itself for future investments, its co-CEOs told employees Wednesday.
Why it matters: Co-CEO Ted Sarandos acknowledged last month in a Bloomberg interview that the company is not growing as fast as he would like.
Zoom in: The cuts are expected to mostly impact the company's business functions, including human resources, product, technology and legal teams, per a source familiar with the situation.
- Despite the cuts, the company expects to meet investor expectations for its full-year financials.
What they're saying: In a note to staff obtained by Axios, Sarandos and co-CEO Greg Peters said meeting growth targets "means making focused choices across the business so we can keep delivering for our members, partners, employees, and investors."
- "We know changes like this are tough, but let's stay focused. This is one of the most dynamic times in the history of entertainment - and it's a moment perfectly suited to a company like ours that's built at the intersection of technology and entertainment. Now it's on us to step up and meet the moment, together, like we always do."
The big picture: Netflix is still the most profitable streaming business among its competitive set, but its focus on streaming means its business isn't as diversified as other entertainment giants, who can offset a competitive streaming market with things like theme parks and products.
- Netflix has invested heavily in games and it's starting to invest in live experiences, but its business is sill highly dependent on streaming subscriptions.
