Netflix cuts 1,000 jobs in product and tech to fight free streaming
Netflix is laying off 6 percent of its workforce, hitting tech and product teams hard as it battles YouTube and TikTok for attention.
Layoffs · Source: Reuters
What happened
Netflix is laying off roughly 1,000 employees across its business. This represents about 6 percent of its total workforce of 16,000 people. Co-CEOs Greg Peters and Ted Sarandos announced the cuts in an internal email on Wednesday. It is the company's largest round of layoffs since 2022, when it cut 450 jobs.
The job cuts heavily target the product, technology, legal, and human resources teams. The executives stated the company needs to be disciplined about where it prioritizes people and resources. Despite the layoffs, they noted the business remains strong and on track to meet its full-year forecast. Netflix plans to continue investing in high-impact areas like advertising tiers, live programming, and gaming.
Reports highlight different pressures on the company. The Daily Caller notes a 40 percent decline in subscribers this year, though Netflix still holds 325 million globally. Meanwhile, Reuters points out that user engagement time is a major concern. The company is losing viewer attention to free, user-generated platforms like YouTube and TikTok, which operate with a massive cost advantage.
By the numbers
- 1,000 — Number of employees Netflix is laying off
- 6 percent — Portion of the total Netflix workforce affected
- 325 million — Global subscribers Netflix currently holds
- 450 — Number of jobs cut during the last major layoffs in 2022
Why it matters
Tech and product roles at major streaming companies are becoming less secure. Netflix is shifting its focus away from traditional subscription growth because that business model is nearing a ceiling. They are now prioritizing new revenue streams like ad tiers and gaming to survive. This means future hiring will likely center on these specific growth areas rather than general platform development or standard software engineering.
The broader streaming industry is also consolidating and changing its approach. Paramount recently formed Skydance after an acquisition, while Netflix failed in its pursuit of Warner Bros Discovery assets. As companies fight free content platforms for user attention, they will likely freeze hiring for traditional media tech roles. Job seekers should expect fewer openings at legacy streaming giants and more competition for the roles that remain.
Who this hits
Tech and product workers
Software engineers and product managers face immediate cuts at Netflix. Future roles at streaming companies will likely require specialized experience in advertising technology or gaming development.
Human resources and legal
These departments are facing direct reductions in this current layoff round. A broader slowdown in general hiring means fewer recruiter and HR roles will be available in the entertainment sector.
Immigrant tech workers
Workers on visas in the affected teams now face a strict timeline to find new sponsorship. The industry-wide slowdown in entertainment tech makes finding a replacement role much more difficult.
What to do this week
- Pivot your job search toward companies building advertising technology or gaming platforms, as these are the growing revenue streams in media.
- If you are on a visa and affected by these cuts, immediately file for a change of status or begin transferring your status to a new employer.
- Look for software engineering roles outside of traditional media and streaming.
- Update your resume to highlight any experience you have with ad-tech, monetization, or live video infrastructure.
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My take
Netflix is cutting builders because the war is no longer about making better software. It is about fighting free platforms like YouTube for human attention. If you are looking for tech roles, follow the new revenue streams like ad-tech and gaming instead of legacy subscriptions.