Global streaming giant Netflix is reportedly preparing to eliminate approximately 1,000 positions in a major restructuring exercise aimed at improving operational efficiency amid slowing business growth and intensifying competition in the entertainment industry.

According to a report by The Wall Street Journal, the proposed reductions represent nearly 6% of Netflix's workforce and mark the company's most extensive layoffs since 2022.

The restructuring is expected to affect several corporate functions, particularly technology, product development, legal services and human resources.

Netflix's co-chief executives, Ted Sarandos and Greg Peters, reportedly communicated the decision to employees through an internal email on Wednesday.

Growth Concerns Prompt Corporate Restructuring

The workforce reduction comes as Netflix attempts to accelerate expansion beyond its core video-streaming subscription model.

Despite maintaining a dominant position in the global streaming industry, the company is confronting increasing pressure to improve financial performance, strengthen audience engagement and develop additional sources of revenue.

At a Bloomberg event in September, Sarandos acknowledged dissatisfaction with the pace of the company's expansion, indicating that management was seeking ways to accelerate growth.

Netflix has consequently been expanding its presence in advertising-supported streaming, live entertainment and gaming, seeking to reduce its dependence on traditional subscription revenues.

Sharp Decline In Share Price Adds Pressure

Investor concerns have also intensified following a substantial decline in Netflix's market valuation.

According to figures cited by Business Insider, Netflix shares have declined by more than 30% over six months and over 40% during the preceding year.

The reported downturn has placed additional scrutiny on the company's growth strategy, spending priorities and ability to maintain profitability in an increasingly competitive market.

Streaming companies are competing not only against one another but also against social media platforms, online gaming services and other digital entertainment formats for consumers' limited viewing time.

Audience Engagement Growth Remains Modest

Netflix recorded approximately 97 billion hours of content consumption during the first six months of the year, reflecting growth of just 2% compared with the corresponding period a year earlier.

Although the total demonstrates the platform's considerable global reach, the relatively modest increase has raised questions about the pace at which audience engagement is expanding.

The company has also decided to move from publishing detailed viewing statistics twice annually to releasing them once a year.

The change has attracted investor attention because viewing patterns are considered an important indicator of customer satisfaction, subscriber retention and the long-term sustainability of streaming revenues.

Subscription Prices Increase In The United States

Netflix has simultaneously implemented higher subscription charges in the American market.

Its standard advertisement-free subscription was increased from $17.99 to $19.99 per month, while the advertising-supported offering rose from $7.99 to $8.99.

The revised pricing reflects the company's efforts to generate additional revenue from existing customers while continuing to invest in original programming, technology and new entertainment formats.

However, repeated price increases also create the risk of consumers reconsidering their subscriptions, particularly when competing platforms offer alternative entertainment options.

Largest Workforce Reduction Since 2022

The latest reported layoffs represent Netflix's most significant employment restructuring in approximately four years.

In 2022, the company implemented substantial job reductions after reporting its first subscriber losses in more than a decade, an episode that prompted a reassessment of its business model and spending commitments.

Netflix employed approximately 16,000 full-time workers at the end of last year.

The new restructuring signals another period of adjustment for the streaming industry, where even established market leaders face pressure to balance investment in content and technology with financial discipline.