Streaming media giant Netflix announced on Wednesday that it would lay off about 6% of its global workforce, affecting approximately 1,000 positions. This is the largest round of layoffs since 2022, driven by slower user growth and increased pressure on platform activity.

Jointly, Greg Peters and Ted Salandos, identified as CEO, stated in an internal email to employees that this round of layoffs mainly affected the product, technology, legal, and human resources teams. They said, "Our goal of 'entertaining the world' is ambitious, and to achieve it, we must be cautious about the priority given to investment in manpower and resources."

Faced with declining user engagement, Netflix has attempted various measures to increase user dwell time: launching live streaming channels, promoting bundled streaming packages, introducing video podcasts, and YouTube creator programs, while also laying out for live sports events. According to data from the analytics firm Antenna, Netflix's user churn rate in the US region is only slightly over 2%, which is among the best in the industry. However, the stock price of the company has still fallen by more than 40% over the past 12 months.

Peters and Salandos stated that the company will continue to increase investment in high-value areas, but it is necessary to make focused choices across all business lines to protect the interests of users, partners, employees, and investors. This round of layoffs occurred a week before Netflix is set to release its quarterly report, and management said that the annual profit guidance target remains unchanged.

The wave of layoffs in the technology and entertainment industries continues, with Disney and Amazon both significantly reducing their staff in recent months. Netflix's last major round of layoffs occurred in June 2022, at a time when the company just announced its first quarterly decline in subscription users in over a decade.