Netflix is laying off about 1,000 employees, which is roughly 6% of its workforce, in its biggest cuts since 2022. The job cuts are primarily in the product, tech, legal, and human-resources teams, according to an internal memo. This move comes as the company faces tough competition for viewers and engagement from legacy rivals and YouTube, leading to slowing growth.
The layoffs are a significant reduction, especially considering the company had about 16,000 employees at the end of last year and cut about 450 jobs in 2022. As a result of the current market challenges, Netflix shares are down about 25% so far this year, indicating a difficult period for the streaming pioneer. The company is struggling with slowing growth and tough competition from legacy rivals and YouTube.
Netflix is taking steps to address these challenges through the layoffs. The impact of the layoffs on the company's future is still uncertain.
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