LOS GATOS, October 15, 2026 — Netflix is cutting approximately 1,000 jobs, or about 6% of its global workforce, in its largest round of layoffs since 2022, according to an internal memo from co-CEOs Ted Sarandos and Greg Peters.
Layoffs Focused on Product, Technology, Legal and HR
The reductions are concentrated in Netflix’s product, technology, legal and human resources departments, as reported by The Wall Street Journal and confirmed in the internal memo. The company had approximately 16,000 full-time employees as of December 31, 2025, according to its SEC filing. The layoffs were announced on Wednesday, October 14, just under a week before Netflix is scheduled to release its third-quarter financial results on October 20.
Co-CEOs Cite Discipline in Resource Allocation
In the memo to employees, Sarandos and Peters wrote that delivering on Netflix’s mission to entertain the world requires disciplined prioritization of people and resources. They stated that the business remains strong and growing, and that Netflix is on track to meet its full-year financial forecast. The executives emphasized continued investment in high-impact areas while making focused choices across the organization.
Netflix Faces Slower Growth and Intensifying Competition
Netflix’s forecast for third-quarter revenue did not meet analysts’ expectations, according to Geo.tv. Co-CEO Ted Sarandos acknowledged last month that the company is “not growing as fast as I want.” The layoffs come amid intensifying competition from platforms such as YouTube and TikTok, and following the recent completion of Paramount Skydance’s acquisition of Warner Bros. Discovery, which consolidated a major rival under one entity. Netflix had previously pursued those assets but withdrew its offer in February.
Layoffs Align with Broader Tech Sector Trend
The workforce reduction reflects a wider trend of cost-cutting and AI-driven efficiency efforts across the technology industry. Despite the cuts, Netflix declined to comment beyond the internal memo, as reported by multiple outlets. The company continues to invest in new business areas including advertising, live content and gaming, while navigating a subscription market that is reaching its limits. Investors will note that Netflix’s stock gained 0.7% on the day of the announcement, according to Geo.tv, even as its share price remains down about 25% for the year to date. The bottom line is that Netflix is tightening its belt to preserve financial discipline amid shifting market dynamics.
Workforce Details and Financial Context
Netflix reported approximately 16,000 full-time employees as of Dec. 31, 2025, including about 10,900 in the United States and Canada, according to its annual filing with the Securities and Exchange Commission. The company posted decent profit of $3.4 billion in Q2 with total revenue of $12.56 billion. Even though Netflix posted decent profit, its forecast of revenues in Q3 did not meet analysts’ expectations. The reported job cuts come after Netflix’s unsuccessful pursuit of Warner Bros. Discovery’s streaming and studio assets. Netflix announced in February that it would not raise its offer for those assets. Paramount Skydance subsequently completed its approximately $110 billion acquisition of Warner Bros. Discovery earlier this month, bringing major entertainment and streaming properties under one company.
Industry Moves and Strategic Shifts
Netflix developed several new business areas, such as ads, live and games. This decision came after cost reduction measures by Disney, which fired about 300 employees last month. The reported layoffs come as Netflix navigates growing competition for viewers’ attention and invests in new businesses beyond its traditional streaming subscription model. Despite the planned workforce reductions, Sarandos and Peters indicated that Netflix remains on track to meet its full-year financial forecast, according to the Journal. The executives told employees the company would continue investing in key priorities while taking a more selective approach to allocating resources.
Sources
- Netflix cuts around 1000 jobs in largest layoff round since 2022
- Netflix reportedly cutting about 1,000 jobs in largest round of layoffs since 2022
- Netflix cuts 1,000 jobs in biggest layoff round since 2022: Here's why
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