Netflix cuts 1,000 jobs amid slowdown in watch time

Streaming giant Netflix announced mass layoffs on Wednesday, affecting roughly 6% of its global workforce, around 1,000 jobs, as it faces heavy competition and stagnant viewing hours.

The layoffs will affect employees across technology, product, legal, and human resources divisions. The announcement comes ahead of Netflix’s quarterly earnings report, scheduled for October 20.

In an internal memo, co-CEOs Ted Sarandos and Greg Peters cited the need for disciplined resource allocation while confirming that the business is to meet its full-year financial forecast.

However, all is not well. Sarandos had recently expressed dissatisfaction with the platform’s expansion pace.

Despite maintaining its market leadership and healthy profits, Netflix faces stagnant viewing hours. It has expanded into video games, documentaries, and live sports to boost engagement.

It has cracked down on password sharing, increased tier prices, and offered cheaper ad-supported subscriptions to drive new member acquisitions, but still faces difficulty increasing consumer viewing time.

Rivals, particularly YouTube, have added to the pressure. A potential combined streaming platform featuring Paramount+ and HBO Max could further intensify competition.

Analysis by Digital i across 20 international markets revealed that average daily usage per YouTube account jumped from 87.2 minutes in 2024 to 99.1 minutes in 2025, while Netflix’s daily usage dropped from 100.5 to 93.4 minutes over the same period.

Netflix is not alone in its cost-cutting efforts; Disney recently eliminated around 300 positions, primarily targeting technology and HR roles.