5 reasons Netflix is struggling as it cuts about 1,000 staffers
Netflix is facing a period of stagnation characterized by slowing viewership growth and increased competition from free platforms like YouTube. In response, the company has initiated significant layoffs, cutting approximately 1,000 staff members.
Why it matters
The struggles of a market leader like Netflix signal a broader correction in the streaming industry as the 'growth at all costs' model faces economic reality.
Netflix co-CEO Ted Sarandos is looking to kickstart growth at the streaming giant. Patrick T. Fallon / AFP via Getty Images; Jakub Porzycki/NurPhoto via Getty Images Netflix shares have struggled amid slower engagement growth and intensifying competition. The paid streaming leader laid off about 1,000 on Wednesday, its biggest round of cuts in years. Here are reasons Wall Street is uneasy about Netflix's outlook. Netflix is in a slump — and it's not just because you can't find a hot new show to watch. The streaming titan's shares are down 42% in the last 12 months and have been nearly cut in half from their all-time high last summer. Netflix had its biggest round of layoffs in four years on Wednesday, cutting about 1,000 employees, roughly 6% of the company. So, what's going wrong?
Also covering this story
3 other newsrooms covered this event. We read each version separately.
Get smarter about the news
Sign up free for a feed built around what you actually care about, Dive Deeper research on any story, and the full text of every article.
Create free accountAlready have an account? Sign in