LOS GATOS, California — Netflix confirmed on Sunday it was cutting roughly 5% of its global workforce, affecting about 1,000 employees. The reductions follow reports that surfaced late last week.

The cuts fall most heavily on corporate and support functions rather than content production, according to a Netflix statement. Affected staff will be notified over the weekend and early next week, with severance packages offered.

Netflix reported more than 14,000 full-time employees in its most recent filings, placing the reduction near the 1,000 mark. The move comes as rivals including Disney+, Amazon Prime Video, and Warner Bros. Discovery's Max compete aggressively on pricing and original content.

Netflix executives have repeatedly signalled plans to lean on artificial intelligence tools for production and operations. The layoffs mark Netflix's most significant workforce reduction since 2022, when the company shed roughly 450 staff after a rare subscriber decline.

A Netflix spokesperson said the latest restructuring was intended to streamline teams rather than respond to subscriber losses and reaffirmed the company's full-year revenue guidance. The cuts arrive days before Netflix reports third-quarter earnings, when investors will scrutinise subscriber additions, advertising-tier growth, and margins.

Analysts at Morgan Stanley and other Wall Street firms have flagged slowing growth in mature markets as a central concern for the sector.