Layoff Wave Hits Leading OTT Platform?

If reports are anything to go by, leading OTT platform Netflix is planning to cut around 5% of its workforce amid growing competition in the entertainment and streaming industry. An announcement could come as early as next week, said a Puck News report.

The reported job cuts come as streaming platforms face increasing pressure from YouTube and other traditional media companies, which continues to attract viewers and advertising revenue.

Netflix had around 16,000 full-time employees at the end of last year. If the reported cuts go ahead, the company will reduce a portion of its workforce as it adjusts to changing market conditions. Netflix last carried out a major round of layoffs in 2022, that was four years ago, where hundreds of jobs were laid off amid slowing growth and subscriber losses.

Since then, the company has been working to increase revenue beyond monthly subscriptions. It also expanded its advertising business, introduced more live programming and invested in gaming to attract new audiences and generate additional income.

Advertising has become an important part of Netflix’s strategy, allowing it to reach customers looking for lower-cost subscription plans while creating another source of revenue. However, YouTube’s growing popularity and the restructuring of traditional media companies have intensified competition for viewers and advertisers.

The reported layoffs highlight the pressure on streaming platforms to control costs while continuing to invest in new content and services. Netflix is looking to maintain growth in an increasingly competitive market while managing its expenses.