Netflix On Wednesday, it was announced that about 6% of the workforce, which is approximately 1,000 employees, will be laid off.

This round of layoffs will mainly affect the product, technology, legal, and human resources teams.

"Our mission – to entertain the world – is ambitious, and to achieve it, we need to maintain discipline in determining where to prioritize our personnel and resources," wrote Netflix co-CEO Ted Salandos and Greg Peters in an email to employees. "Our business is strong and growing, and we are still on track to meet our annual forecasts. We will continue to make active investments in high-impact areas to improve our services and further drive growth and innovation."

"To achieve this, it means making focused choices throughout the business so that we can continue to provide services to members, partners, employees, and investors," the memo states.

Netflix stated that, apart from the joint memorandum from CEO, there are no further comments. The company will release its quarterly financial results on October 20.

A few weeks before this layoff, Salandos told attendees at a Bloomberg Screen Time conference that the company's "growth rate was not as fast as I would have liked."

In recent months, Netflix has faced a paradox. It continues to report solid profits and remains the largest player in the streaming industry, yet its viewership hours have stagnated. The main drivers for acquiring new subscribers have been its efforts to combat password sharing and the introduction of more affordable ad-supported packages.

Netflix The biggest threat has always been YouTube, but what is approaching on the horizon is Skydance. Paramount and Warner Bros. are exploring a merger to integrate the streaming platforms of both companies: Paramount and HBO Max.

In recent years, Netflix has diversified its content to include live sports, documentaries, and video games in order to compete for consumers' attention. At the same time, it lacks popular and highly discussed works that have previously driven subscription growth and viewership, such as "Stranger Things" and "Squid Game."

Moreover, Netflix is not the only company in the media industry seeking to cut costs. Last month, Disney announced that it would lay off about 300 employees, with the majority of those layoffs coming from human resources and technical positions.