Netflix plans to cut roughly 1,000 jobs while pushing for faster growth

Netflix plans to eliminate roughly 1,000 jobs, or 6% of its workforce, largely in product, technology, human resources and legal, according to an employee memo obtained by CNBC. The cuts come while co-CEOs Ted Sarandos and Greg Peters say the business is growing and remains on track to deliver its full-year forecast.

Sarandos and Peters framed the reductions as choices about where to put people and resources, while pledging continued investment in areas intended to improve the service and accelerate growth. Sarandos had already expressed dissatisfaction with the pace, saying at the Bloomberg Screentime conference that Netflix was “not growing as fast as I want,” CNBC reported.

LightShed Partners co-founder Rich Greenfield offered a similar distinction in an Oct. 16 CNBC appearance: Netflix is not fundamentally broken, but faces urgency to grow faster. The discussion focused on the layoffs and the company’s engagement challenges.

Viewing time has stagnated despite solid profits, with a password-sharing crackdown and a cheaper, advertising-supported tier serving as the main drivers of new subscriber acquisitions, according to CNBC. Netflix has expanded into live sports, documentaries and video games, but has lacked the breakout hits that previously lifted subscriber growth and viewing.

The push for stronger programming also reaches the executive ranks. Former Disney executive Peter Rice is replacing Bela Bajaria as content chief and takes over Oct. 26, Benzinga reported. Greenfield has argued that a major content success is the most immediate need, alongside Netflix’s pursuit of YouTube creators and video podcasts.

HR and technology jobs are also bearing cuts at another large entertainment employer. Disney said last month that it would lay off around 300 employees, with most reductions in those two functions, according to CNBC.