Netflix Shares Fall 42% Over Past Year as Competition Intensifies

Netflix is reportedly preparing for potential cuts affecting about 5% of its workforce, or roughly 800 jobs, as the streaming company faces weaker growth and increasing competition for U.S. television viewing.

Netflix had about 16,000 full-time employees at the end of last year. The company has not identified the departments that could be affected, and the potential reductions have not been confirmed as a completed decision.

The potential cuts would mark Netflix’s first major layoff round since 2022, when it eliminated hundreds of jobs during a period of slower growth and subscriber losses. Netflix also laid off a small number of product-team employees in February.

Netflix shares stood at $70.96, down 42% over the past year, 22% year to date and 30% over the past six months.

Competition has intensified as YouTube expands its share of television viewing and advertising. A July measure of U.S. television viewing put YouTube at 14.2%, compared with 7.8% for Netflix.

Netflix has expanded beyond its subscription business into advertising, live programming and gaming. The company agreed in December to an $83 billion deal for Warner Bros. Discovery’s studio and streaming assets but later withdrew after declining to match Paramount Skydance’s $110 billion offer. Paramount Skydance later closed that transaction.