Netflix Is Reportedly Cutting 5% of Its Staff. Its 2022 Layoffs Came Days After the Stock Bottomed.

Netflix is reportedly planning to cut around 5% of its ~16,000-person workforce (approximately 800 jobs) as early as next week. The layoffs aim to align non-content spending growth with slowing revenue growth. Unlike the 2022 layoffs that coincided with a stock bottom, the current situation differs: Netflix maintains double-digit revenue growth and a 33.4% operating margin, suggesting this is a margin optimization move rather than a defensive measure. The stock trades at 19x forward earnings, with revenue growth cooling from 18% to 13% year-over-year.