5 hrs ago
Netflix Reportedly Plans Workforce Cuts as Amazon Trims Jobs
Netflix is reportedly preparing to reduce the number of people it employs, but it has not commented on the report.
The reported cuts could affect about 5% of its workers.
Netflix has also faced concerns from investors about its share price, audience engagement and slower sales growth.
Meanwhile, Amazon confirmed that it recently cut some jobs, mostly in the part of the company that runs its online store.
A person familiar with the cuts said fewer than 1,000 white-collar workers were affected.
These cuts follow a much larger reduction of 30,000 jobs that began last year.
Amazon founder Jeff Bezos said the company hired too many people during the pandemic.
Netflix is due to report its next quarterly earnings on October 20.
Netflix is reportedly planning to cut about 5% of its workforce as early as next week; the company declined to comment.
Netflix had approximately 16,000 full-time employees at the end of last year, with 68% based in the United States.
Netflix shares have fallen about 42% since it began pursuing Warner Bros. Discovery, while investors have raised concerns about engagement and growth.
Amazon confirmed a small number of job cuts, mainly in its Stores division; a person familiar with the matter put the total below 1,000.
Amazon's latest reductions follow a broader workforce cut involving 30,000 jobs that began last year and continued through January.
- Who
- Netflix and Amazon; Amazon confirmed recent job cuts, while Netflix's potential cuts were reported by Puck.
- What
- Netflix is reportedly planning to cut about 5% of its workforce, and Amazon has eliminated a small number of jobs, mainly in its Stores division.
- Where
- Amazon employees in the United States, India and the United Kingdom received layoff notices; Netflix's reported cuts were not assigned a location.
- When
- Netflix's reported cuts could begin as early as next week. Amazon's cuts were confirmed on Wednesday; Netflix's next quarterly earnings are scheduled for October 20.
- Why
- Amazon said changes to its Stores business would better support its priorities. Jeff Bezos said earlier workforce reductions were needed because Amazon hired too many people during the Covid-19 pandemic. Netflix's reported reason for potential cuts was not stated.
Company explanations
Reported or cited concerns
Amazon workforce changes
Company explanations
Amazon said it adjusted parts of its Stores business to better deliver on its priorities.
Reported or cited concerns
Jeff Bezos said the company's wider workforce reductions were necessary because it hired too many employees during the pandemic.
Netflix business pressures
Company explanations
Netflix has introduced an ad-supported plan, restricted password sharing, raised prices and expanded into live events, podcasts and games to attract and retain audiences.
Reported or cited concerns
Investors have raised concerns about Netflix's ability to engage viewers; the article reports 2% engagement growth in its latest reporting period and slower sales growth in recent quarters.
Key facts
- Netflix reported planned cuts
- About 5% of its workforce, potentially as early as next week; Netflix declined to comment.
- Netflix workforce
- Approximately 16,000 full-time employees at the end of last year; 68% were based in the United States.
- Netflix share performance
- Shares had fallen about 42% since the company began pursuing Warner Bros. Discovery.
- Amazon latest cuts
- A small number, mainly in the Stores division; a person familiar with the matter said fewer than 1,000 white-collar employees.
- Amazon previous workforce reduction
- Involved 30,000 jobs, began last year and continued through January.
- Amazon stated rationale
- The company said adjusting parts of its Stores business would better enable it to deliver on its priorities.
- Netflix earnings date
- October 20.
Quotes
Amazon spokesperson
A spokesperson for Amazon.
“We've adjusted parts of our Stores business because we believe this structure will better enable us to deliver on our priorities.”
livemint.com
“People were staying home and they were ordering, and it was an incredible, stressful period for us, by the way.”
livemint.com
Sources
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