Netflix is restructuring its organization, laying off about 1,000 employees, or 6% of its total workforce, according to Reuters and local media reports on the 14th (local time). This marks the largest round of layoffs since 2022.

According to an email sent to employees by Netflix Co-Chief Executive Officers (CEOs) Greg Peters and Ted Sarandos, the restructuring will primarily take place in the product, technology, legal, and human resources departments.

In the email, they wrote, "Our mission to entertain the world is an ambitious goal, and to achieve it, we must make rigorous judgments about where to prioritize our headcount and resources."

They emphasized, "The business is showing solid growth, and our plans to meet our annual performance outlook are proceeding without a hitch."

AFP reported that Netflix, the streaming market leader, is no longer growing at its past pace.

In the second quarter of this year, Netflix’s revenue increased by 13.4% compared to the same period last year, slowing down from 16.2% in the first quarter. The growth rate for the third quarter is projected to be a mere 11.7%. Netflix is scheduled to announce its third-quarter earnings on the 20th.

Earlier this year, Netflix also failed in its acquisition of Warner Bros. Discovery.

Ross Benes, a principal analyst at market research firm eMarketer, analyzed, "Netflix has not found another revenue source," adding, "It still relies on a subscription business that is nearing its limits."

He also noted, "Amid mounting pressure, the company will seek to turn things around through low-cost content."

Netflix has been trying to expand its business beyond subscriptions by investing in ad-supported tiers, live-streamed content, and gaming.

Netflix's previous large-scale restructuring was in 2022. At that time, when subscriber numbers fell for the first time in over a decade, the company laid off about 450 people across two rounds.

As of the end of last year, Netflix’s total headcount stood at approximately 16,000 employees.

Netflix's stock price has dropped 24.7% since the beginning of this year.

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