Netflix restructuring: 16,000 employees at the end of 2025, but now 850 jobs may be at risk! Here’s what changed for the streaming giant

Netflix Inc. is set to lay off about 5% of its staff as soon as next week, according to a news report by the newsletter Puck. A spokeswoman for the streaming service declined to comment on the reported layoffs, news agency Bloomberg stated.

While they have been smaller, Netflix has seen successive rounds of layoffs, with reports of the most recent taking place in Q1 this year regarding their global product team. Based on the number of staff to be laid off, this may indicate a more widespread round of redundancies.

There is yet to be any official response indicating what teams will be impacted by this next round of layoffs, if indeed it occurs.

In terms of content, one of the key areas of concern is the extent to which live events are justified in their spend. As noted in the report, they take up 5% of the content spend but less than 1% of viewing hours. This discrepancy may be a matter of debate, with executives at Netflix suggesting that they are a compelling draw for both new and existing customers, and are vital to advertising.

In terms of viewing hours, events have potential to gain engaged viewers, and can drive people on to become new viewers.

This may lead management to determine the extent to which a revision to the content strategy proves compelling in order to grow the business. While live events remain a key pillar for the company's content offering, the extent to which they warrant a sizable percentage of the overall spend is yet to be seen. In short, this next round of layoffs at Netflix, if correct, will play into a wider set of strategic choices.

Across businesses, reducing headcount serves as a primary method of controlling the costs, and focusing on the most compelling areas of opportunity. By laying off part of its workforce, Netflix can reshape its operations in order to align the business around the areas most conducive with growth, while minimising costs and redundant processes.

At this stage, this report indicates a proposed reduction of approximately 850 employees. The company has yet to indicate what areas of the business would be impacted by the changes.

Netflix was employing approximately 16,000 full-time workers as of the end of last year, with 68% of them based in the US, according to a regulatory filing.

Netflix shares have dropped by around 42% since the streaming giant started pursuing the rival entertainment company, Warner Bros. Discovery Inc. Investors saw the proposed deal as a sign of weakness, given Netflix’s historical reluctance to make big purchases, Bloomberg noted.

The bigger picture question is how Netflix will respond to the challenges of turning revenue growth into greater momentum in terms of viewing hours. The next set of changes can be debated, but it will be important for Netflix to balance the costs with the strategy of building audience engagement and driving revenue.