Netflix is cutting more than 1,000 jobs globally as the US streaming giant battles slowing growth, mounting competition from Paramount, Amazon and Google owned YouTube, and growing pressure to find new revenue streams beyond its traditional subscription business.

The latest cuts, which follow a major round of redundancies in 2022, will affect approximately 6% of its workforce, with human resources, legal, product and technology operations among the hardest hit.

The restructuring comes as Netflix makes a major push into live sport, taking a leaf out of the playbook of specialist sports streaming operators such as DAZN and Australia’s popular Kayo, in an effort to attract new subscribers and keep existing customers watching for longer.

The company’s latest sporting acquisition is the rights to broadcast all 104 matches of the 2030 FIFA Men’s World Cup in Spain and Andorra, marking the first time Netflix will screen the men’s tournament.

The announcement comes at a particularly sensitive time for Netflix, which is facing growing questions about how much further its subscription business can expand as consumers are presented with an increasing number of competing streaming services.

Netflix said it would broadcast every match from the tournament, which will be hosted by Spain, Portugal and Morocco, with Argentina, Uruguay and Paraguay also staging matches to commemorate the competition’s centenary.

Netflix CEO Ted Sarno

“We will offer all 104 matches of the world’s biggest football competition live,” the company said.

Under the agreement, one match per match day will be available free in Spain, while all matches involving Spain and the tournament final will also be available on free-to-air television.

Netflix has already secured the rights to the 2027 and 2031 Women’s World Cups in the United States and Canada, signalling that premium sporting rights are becoming an increasingly important part of its growth strategy.

The move also puts Netflix on a more direct collision course with Amazon, which has invested heavily in live sport, and established sports streaming operators including DAZN.

In Australia, Foxtel owned Kayo has demonstrated the ability of live sport to attract paying subscribers, although the escalating cost of premium sporting rights presents a significant financial challenge for streaming operators.

For Netflix, the attraction is clear. Unlike movies and television series, major live sporting events can deliver enormous audiences at a specific time, creating opportunities to attract advertisers and reduce subscriber churn.

The push into sport comes as Netflix is simultaneously attempting to reduce operating costs.

In an email to employees on Wednesday, co-chief executives Ted Sarandos and Greg Peters defended the decision to slash jobs.

“Our mission—to entertain the world—is ambitious, and delivering on it requires us to be disciplined about where we prioritize our people and resources,” they told employees.

The executives said Netflix would “continue to invest aggressively in high-impact areas to improve our service and further drive growth and innovation”.

The cuts highlight the difficult balancing act facing the company as it attempts to fund expensive programming and sporting rights while reducing overheads.

Last month, Sarandos acknowledged that Netflix was struggling to deliver the growth management wanted.

“We’re not growing as fast as I want us to,” he told Bloomberg.

The admission comes as the global streaming industry undergoes another major shake-up.

Paramount’s US$110 billion merger with Warner Bros, the owner of HBO, has created a formidable new competitor with an extensive library of films, television programming and valuable entertainment franchises.

Netflix had attempted to secure its own deal with Warner Bros but was ultimately outbid by Paramount.

The combined business now presents a significant competitive challenge for Netflix, particularly as Paramount’s new management moves to strengthen its position in the global entertainment market.

At the same time, Google owned YouTube and TikTok are continuing to capture consumer viewing time, particularly among younger audiences who increasingly consume short-form video and creator driven entertainment rather than traditional television programming.

Amazon is another major threat, using its Prime subscription ecosystem to combine shopping, entertainment and live sport.

Netflix has spent several years attempting to diversify its operations and reduce its dependence on subscription revenue.

These initiatives have included launching a cheaper advertising supported service, investing in video games, introducing live programming and experimenting with video podcasts and content from popular YouTube creators.

The company has also explored bundling arrangements with other streaming services in an effort to improve customer retention.

Despite these initiatives, analysts argue that Netflix has yet to establish a second major revenue engine capable of matching its subscription business.

Ross Benes, senior analyst at eMarketer, said the company was approaching the limits of its traditional growth model.

“They haven’t been able to find another line of major revenue,” he said.

“Eventually, because they’re nearing a ceiling with that, they’ll need another revenue stream to diversify, and that’s where it’s been more of a struggle.”

The growing investment in live sport could also create another problem for Netflix.

Unlike traditional entertainment programming, where content can generate viewing over several years, major sporting rights typically involve expensive contracts and events whose value is concentrated around live broadcasts.

Netflix will also have to compete with broadcasters and streaming operators that have spent decades building sports production capabilities, securing rights and developing relationships with sporting organisations.

For Australian streaming operators, the arrival of Netflix as a serious bidder for premium sporting rights could eventually put further pressure on the cost of acquiring major events.

The strategic shift raises questions about whether Netflix can successfully compete in a market where DAZN, Amazon and established broadcasters are already investing billions in live sport.

What is clear is that Netflix is no longer relying solely on movies, television series and subscriber growth to drive its business.

With more than 1,000 employees facing redundancy, a new wave of powerful competitors emerging and expensive sporting rights becoming central to its strategy, Netflix is betting that live sport can deliver the next stage of growth that its traditional streaming business is struggling to generate.