Netflix plans to cut 5% of workforce, Puck reports

Netflix ↘ 1.01% is preparing to cut about 5% of its workforce, Puck News reported on Friday, citing people familiar with the matter. The announcement could come as early as next week. Netflix declined to comment on the report.reuters+1

These would be the streaming company's biggest job cuts in years. They come as the entertainment business goes through a wave of consolidation that has changed the competitive landscape for Netflix.

Scope of the cuts

Puck said the layoffs are "part of a restructuring that will impact about 5 percent of employees". The outlet estimated the reduction at about 850 jobs, based on a global headcount of roughly 17,000. Reuters, citing a different figure, said Netflix had about 16,000 full-time employees at the end of last year. Neither outlet said which divisions or regions would be affected.digg+2

Reuters described Netflix's last major round of layoffs as coming in 2022. That year the company cut hundreds of jobs as subscriber growth slowed and it lost customers for the first time in a decade. Puck noted that the 2022 period inside the company became known as the "Great Netflix Correction".economictimes+2

A changed competitive field

Netflix is facing a crowded streaming market. Media companies are merging, and YouTube Alphabet Inc. ↗ 1.72% is winning a growing share of viewing time and advertising spending, Reuters reported. Earlier this year, Warner Bros. Discovery signed a \$110 billion deal with Paramount Skydance after Netflix declined to match the offer.thestar+1

The Netflix report was part of a broader Puck column. That column also said layoffs are expected at the combined Skydance and Warner Bros. operation.puck+1

Diversifying beyond subscriptions

Netflix has been building businesses beyond its core subscription service, including advertising, live programming and games. The planned restructuring would come months after the company cut back on games: in August, Netflix closed two internal game studios, Night School and Moonloot, and laid off staff in that division.interviewpal+1

The company has not said whether the new cuts will be tied to particular business lines. Puck reported only that a restructuring "could be announced" as soon as next week.puck