Netflix Is Reportedly Preparing to Lay Off 5% Of Workforce Amid Growth Slowdown

• Netflix plans to cut about 5% of its workforce as early as next week, potentially affecting hundreds of roles across its 16,000 full-time staff worldwide. 
• The company’s stock has plummeted roughly 42% since initiating a bid for Warner Bros. Discovery Inc.
• Netflix is expanding into live broadcasts, podcasts, gaming, and international partnerships to reignite viewer engagement. 

Netflix Inc. (NFLX) is preparing to lay off about 5% of its global workforce as early as next week, according to a report by media newsletter Puck.

A representative for the streaming giant declined to comment on the reported job reductions.

Based on regulatory filings from late last year, Netflix employed roughly 16,000 full-time staff members, with approximately 68% located in the United States. A 5% reduction would affect around 800 employees across the organization.

Investor Skepticism

The reported restructuring follows months of pressure on the company's valuation. Netflix shares have fallen about 42% since the service pursued an acquisition of rival media titan Warner Bros. Discovery Inc.(WBD) last year. 

Wall Street saw the buyout effort as a rare departure for a firm that has historically grown through organic expansion rather than major corporate consolidation.

The bid ultimately ended after Warner Bros. was acquired by the newly rebranded Skydance Corp.

Slowing Revenue and Engagement Challenges

Beyond market turbulence, Netflix faces operational pressures around viewer retention and content reception. Platform engagement grew by just 2% in the most recent reporting period, while its Emmy Awards haul fell to a decade low.

In recent years, the company implemented several monetization strategies, including launching a subscription tier with advertisements, curbing password sharing, and raising subscription prices. Despite these efforts, top-line sales growth has continued to cool.

At the Bloomberg Screen Time conference in Los Angeles, Co-Chief Executive Officer Ted Sarandos acknowledged the slowdown, admitting the platform's current trajectory is behind executive expectations.

Diversifying Content Operations

To reignite platform engagement, Netflix has been expanding beyond traditional film and television programming. The streaming platform has increasingly invested in live event broadcasting, video gaming offerings, and podcasts, while also licensing third-party catalog content, including an agreement with French broadcaster TF1.

Financial analysts and investors will closely monitor the company's performance when Netflix reports its upcoming quarterly results on Oct. 20.

NFLX Stock: Retail View 

Retail sentiment on Stocktwits was ‘bullish’ with ‘high’ message volumes. 

NFLX stock has lost about 25% year-to-date. 

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