Netflix plans substantial layoffs, sources say

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The cuts are expected to impact 5% of the company‘s workforce, which could be 800 workers, according to one of the sources who were not authorized to comment. The job losses will affect the creative team including those working on features, the source said.

Netflix declined to comment. The planned cuts are believed to be the biggest at the Los Gatos company since 2022. The news was first reported by news outlet Puck.

Netflix scripted chief Jinny Howe must replace ending franchises like “Stranger Things” and “Outer Banks.” Inside her bets on “The Roman,” “The Body” and first-time showrunners.

“Overall we’re not growing as fast as I want us to, and we’re working on making that move faster,” said Netflix co-Chief Executive Ted Sarandos at the Bloomberg Screentime event last week.

Netflix has noted how engagement can be measured in different ways. For example, its investment in live programming helps spur significant subscription sign-ups, even though it represents a small percentage of watch time on the streaming service, the company has said.

Some investors are concerned about Netflix’s future growth, causing the company’s stock price to tumble 21% year to date.

But some investors remain skeptical about the company’s future growth. Rival YouTube remains the leader in streaming viewing hours in the U.S. on TVs, representing 13.8% versus Netflix’s 8% in May, according to Nielsen. Netflix stock has also declined 43% compared to a year ago. On Friday, the stock closed at $70.30, down about 2%.

Recently, Netflix made changes to its games division. In August, the company closed its Hollywood-based gaming studio Night School and said it was in the process of closing its Helsinki, Finland-based gaming studio Moonloot.

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Wendy Lee is an entertainment business reporter, covering streaming services such as Netflix, Amazon Prime Video and Apple TV+. She also writes about podcasting services, digital media and talent agencies.