Netflix is planning to cut about five per cent of its workforce, with an announcement expected as early as next week, as the streaming giant navigates growing competition and pressure to diversify its revenue, according to a report by Puck News.
The planned job cuts could affect approximately 800 employees, based on the company’s workforce of about 16,000 full-time staff at the end of 2025.
Puck News reported the development on Friday, citing people familiar with the matter. Netflix declined to comment on the report, and the company has yet to publicly confirm the proposed reductions.
If implemented, the cuts would mark another significant workforce reduction for the entertainment company, whose last major round of layoffs came in 2022.
Netflix cut hundreds of jobs that year amid slowing growth and subscriber losses, at a time when the company was struggling to maintain its momentum in an increasingly crowded streaming market.
Since then, the company has worked to strengthen its position by expanding beyond its traditional subscription-based business. Its strategy now includes advertising, live programming and gaming, as it seeks to create additional revenue streams and attract a wider audience.
The reported layoffs come as competition for viewers and advertising spending intensifies, with streaming platforms and traditional media companies fighting for a larger share of the global entertainment market.
YouTube has also emerged as a formidable competitor, capturing an increasing share of viewing time and advertising revenue. Its growing influence has added pressure on streaming companies to demonstrate that their business models can remain profitable while attracting and retaining audiences.
At the same time, consolidation among media companies is reshaping the industry, forcing entertainment businesses to reconsider their spending, operations and long-term growth strategies.
For Netflix, the reported workforce reduction could form part of a broader effort to manage costs while investing in areas that offer opportunities for growth. However, the company has not disclosed the reasons for the proposed cuts or identified the departments that could be affected.
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The timing and scale of any eventual layoffs also remain uncertain, as Netflix has not confirmed that a final decision has been made.
The company’s expansion into advertising and live content reflects the changing economics of streaming, where businesses increasingly seek to generate revenue beyond monthly subscriptions.
Advertising offers platforms an additional way to earn money from viewers, while live programming can attract large audiences at specific times and create opportunities for advertisers. Gaming, meanwhile, gives Netflix another avenue to engage subscribers beyond films and television series.
However, these ventures also require investment as the company develops new offerings and competes with established players across the entertainment and digital media industries.
Netflix’s reported plan to reduce its workforce therefore comes at a time when the streaming business is undergoing change, with companies seeking to balance investment in new products against the need to control operating costs.
The company has not commented on whether the reported job cuts are connected to its expansion plans or its competitive position in the streaming market.
About the Author
Cecilia Attah is a tech analyst with a degree from Benue State University. She covers tech news and startups at TechRegard with a focus on how technology is transforming Africa and shaping the global landscape.
