Newsletter Puck reported that Netflix is preparing to cut around one in twenty jobs as early as next week. Asked about the report, a Netflix spokesperson declined to comment. A regulatory filing shows the company finished last year with 16,000 full-time employees, and 68% of them were in the US.
Since the company began pursuing Warner Bros. Discovery Inc. last year, Netflix's stock has fallen by roughly 42%. Many investors saw that pursuit as a sign of vulnerability because Netflix doesn't typically do big takeovers. For context, this week the newly renamed Skydance Corp. acquired Warner Bros.
Headcount decisions reveal where a company thinks growth has stalled. Market Briefs covers media economics free every weekday.
In the latest period, engagement increased by just 2%, and, according to the Television Academy, Netflix's Emmy wins slid to a ten-year low. The company has thrown a lot at the problem over the past few years: launching an ad-supported plan, tightening account sharing, and raising prices. Even so, sales have slowed more recently.
Co-CEO Ted Sarandos said at last week's Bloomberg Screentime conference in Los Angeles that the company isn't expanding as quickly as he'd like. Netflix has been leaning into live events, podcasts and games, and it also brought in shows from French broadcaster TF1.
Netflix reports earnings on Oct. 20. That update is the next clean read on how cost cuts, new content bets and softer engagement are coming together. For everyday investors, the question is simple: are these moves rebuilding momentum that shows up in revenue and time spent watching, or not?
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