Netflix plans to cut 5 per cent of workforce as streaming competition intensifies

MUMBAI: Netflix may be preparing to press pause on thousands of careers as competition in the streaming market heats up.

The streaming giant is planning to cut about 5 per cent of its workforce, with an announcement expected as early as next week, according to a report by Puck News on Friday, citing people familiar with the matter.

The proposed cuts would come as the company navigates a rapidly changing entertainment landscape, with traditional media businesses consolidating, rivals competing aggressively for subscribers and YouTube capturing a growing share of viewership and advertising spending.

Netflix had approximately 16,000 full-time employees at the end of last year. If the reported reduction is applied to that workforce, it would amount to roughly 800 jobs, although the final number and scope of the cuts have not been confirmed.

The company’s last major round of layoffs came in 2022, when it eliminated hundreds of jobs amid slowing growth and subscriber losses. The move reflected mounting pressure on streaming platforms to manage costs as the industry adjusted to changing viewing habits and a more challenging economic environment.

Since then, Netflix has continued to evolve beyond its traditional subscription-led model. The company has been investing in advertising, live programming and gaming as it seeks to broaden its revenue streams and strengthen its position in an increasingly crowded market.

Advertising has emerged as an important growth opportunity for streaming platforms, allowing them to reach audiences who may be unwilling to pay for premium subscriptions while creating an additional source of income. Netflix has been building its advertising business as it looks to attract brands seeking access to its global audience.

Live programming and gaming are also part of the company’s broader strategy to keep viewers engaged for longer and differentiate its offering from competing services. These investments, however, place Netflix in a market where established media companies, digital platforms and technology businesses are all vying for consumer attention and advertising budgets.

YouTube’s growing influence presents a particular challenge, as the platform competes for both viewing time and advertising expenditure across a wide range of content categories. Meanwhile, consolidation among media companies is reshaping the competitive landscape, increasing pressure on streaming businesses to balance investment with financial discipline.

Netflix has not confirmed the reported workforce reduction, and further details about the timing, departments or locations potentially affected remain unclear.

If announced, the cuts would underline the continuing pressure on entertainment companies to streamline operations while investing in new ways to attract audiences and generate revenue. For Netflix, the challenge will be to keep its growth story on track without letting costs run away with the plot.