Netflix Is Reportedly Cutting 1,000 Jobs – Co-CEOs Say Company Must Be ‘Disciplined’ With Resources

Netflix is reportedly cutting 1,000 jobs in its largest round of layoffs in four years, according to a Wall Street Journal report.

• Co-CEOs Greg Peters and Ted Sarandos told employees the company needed to be more “disciplined” in allocating its people and resources.
• They added that Netflix was on track to deliver on its full-year forecast and investing "aggressively in high impact areas.”
• Netflix is scheduled to report its third quarter earnings next week, with Wall Street expected EPS of $0.82 on revenue of $12.88 billion.

Netflix (NFLX) is reportedly cutting 1,000 jobs amid increased streaming competition from Google’s YouTube, Amazon (AMZN), Disney (DIS) and the newly formed Skydance (SKYD), with its co-CEOs telling employees on Wednesday that the company needs to be more “disciplined” in allocating its people and resources.

“Our mission—to entertain the world—is ambitious, and delivering on it requires us to be disciplined about where we prioritize our people and resources,” co-CEOs Greg Peters and Ted Sarandos wrote in a company email, according to The Wall Street Journal report.

They added that Netflix remains on track to deliver its full-year forecast and “invest aggressively in high-impact areas” to drive growth. “Doing that means making focused choices across the business so we can keep delivering for our members, partners, employees, and investors,” the email added.

When Netflix last reported significant layoffs in June 2022, it had recently reported its first quarterly loss of subscribers in more than a decade.

Netflix Job Cuts Come Ahead Of Q3 Earnings

The layoffs come ahead of the company’s third-quarter (Q3) earnings scheduled for next week. Wall Street is expecting Netflix to report earnings per share (EPS) of $0.82 on revenue of $12.88 billion, according to Koyfin.

The cuts also follow comments by Sarandos at the Bloomberg Screen Time conference a few weeks ago. The co-CEO said Netflix was “not growing as fast as I want,” highlighting his ambitions for the streaming business.

Netflix is not the only company looking to cut costs in the media space. Last month, Disney said it would lay off around 300 employees, with the majority of cuts coming from human resources and technology roles. Meanwhile, Amazon cut over 16,000 roles in January, but the cuts were not limited to the Prime Video vertical. 

Netflix Stock Falls, Retail Sentiment Turns Neutral

NFLX stock shed around 1.3% in midday trade on Wednesday. On Stocktwits, retail sentiment around the streaming giant dipped to ‘neutral’ from ‘bullish’ territory over the past day, while chatter stayed at ‘normal’ levels.

Netflix was not the entertainment stock in the red on the day. SKYD stock plummeted over 27% in midday trade to a record low of around $6.75, marking its biggest single-day drop in three years. DIS stock edged lower by 0.5%, while AMZN stock fell over 1%. 

On Stocktwits, retail sentiment around Disney remained in ‘neutral’ territory over the past day, while sentiment around Amazon shifted to ‘bearish’ from the ‘neutral’ zone and sentiment around Skydance moved to ‘bullish’ from ‘neutral’ territory.

For updates and corrections, email newsroom[at]stocktwits[dot]com.<