Netflix is planning to cut about 5% of its workforce, with an announcement expected as early as next week, Puck News reported Friday, citing people familiar with the matter.
The potential layoffs come as the streaming giant navigates an increasingly competitive entertainment market. Traditional media companies are consolidating their businesses, while YouTube continues to capture a growing share of viewership and advertising spending, putting pressure on streaming platforms to find new ways to attract audiences and generate revenue.
Netflix had about 16,000 full-time employees at the end of last year. If the reported cuts go ahead, they would affect a portion of its workforce as the company continues to adjust its business strategy to changing market conditions.
The company’s last major round of layoffs came in 2022, when it eliminated hundreds of jobs amid slowing growth and subscriber losses. At the time, Netflix was facing challenges as the streaming market matured and competition for subscribers intensified.
Since then, the company has worked to broaden its revenue streams beyond monthly subscriptions. Netflix has expanded its advertising business, introduced more live programming and invested in gaming as it looks to reach new audiences and create additional sources of income.
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Advertising has become an increasingly important part of Netflix’s strategy, allowing the company to attract viewers who prefer lower-cost subscription plans while building a new revenue stream. Its investments in live programming and gaming also reflect efforts to offer more than traditional on-demand movies and television shows.
The reported workforce reduction comes as media companies face mounting pressure to control costs while competing for viewers and advertisers. With YouTube strengthening its position in the digital video market and established entertainment companies reshaping their operations, Netflix is operating in an environment where sustaining growth requires continued investment and tighter management of expenses.