Netflix is cutting about 1,000 jobs, roughly 6% of its workforce, in its biggest round of layoffs since 2022. Co-CEOs Ted Sarandos and Greg Peters announced it in a memo to staff on Wednesday, October 14, and The Wall Street Journal reported it first.
The timing stands out. Netflix reports third-quarter results on October 20, less than a week away.
Who is affected
The Journal reported that the cuts fall mainly on product, technology, legal and human resources. Netflix had about 16,000 full-time employees on December 31, 2025, around 10,900 of them in the United States and Canada, according to its annual filing with the Securities and Exchange Commission. Puck News had earlier reported that the company was preparing to cut about 5% of staff, and Reuters said on October 9 that Netflix declined to comment on that report.
In the memo, Sarandos and Peters wrote that Netflix’s mission to entertain the world is ambitious and that delivering on it means being disciplined about where it puts people and resources. The business, they said, is strong and growing, and the company remains on track to meet its full-year forecast. They promised to keep investing aggressively in high-impact areas, through “focused choices across the business.” Netflix declined to comment beyond the memo.
Growth questions
Netflix posted a $3.4 billion profit in the second quarter on revenue of $12.56 billion, per Geo.tv. Even so, its third-quarter revenue forecast fell short of what analysts wanted, and Sarandos admitted last month that the company is “not growing as fast as I want.”
Competition is tightening. YouTube and TikTok keep pulling at viewers’ attention, and a rival has just been consolidated: Paramount Skydance completed its roughly $110 billion acquisition of Warner Bros. Discovery earlier this month. Netflix had bid for Warner’s studio and streaming assets but said in February it would not raise its offer.
Netflix has been building businesses beyond subscriptions, including advertising, live programming and games. Disney, for its part, cut about 300 employees last month.
Investors will note the market’s shrug. Netflix shares rose 0.7% on Wednesday, though they are down about 25% for the year.
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
