Netflix has announced plans to cut approximately 1,000 jobs worldwide, affecting about 6% of its workforce in its largest round of layoffs since 2022.
The reductions will mainly affect employees in product development, technology, legal, and human resources as the streaming company reorganises its operations and concentrates spending on areas it considers important for future growth.
According to Variety, Netflix’s co-chief executives, Ted Sarandos and Greg Peters, informed employees of the changes in an internal memo on Wednesday, 14 October 2026.
The executives described the decision as difficult but said the company needed to be disciplined about how it allocated staff and resources.
Around 1,000 employees affected
Netflix employed approximately 16,000 full-time workers at the end of 2025. The latest reductions represent about 6% of that workforce.
The company said most affected positions would be in its product, technology, legal, and human resources departments, although other teams would also experience cuts.
The announcement marks Netflix’s biggest round of job reductions since 2022, when it eliminated approximately 450 positions following a rare decline in subscribers.
The executives said supporting departing employees was an immediate priority, while the process would vary according to local employment requirements.
Layoffs come despite strong financial performance
The restructuring comes despite continued growth in Netflix’s revenue and profits.
The company reported approximately $45.2 billion in revenue for 2025, an increase of about 16% from the previous year, while net income rose to around $11 billion.
Netflix has projected revenue of between $51 billion and $51.4 billion for 2026.
Its executives said the business remained strong and that the company was on track to meet its full-year forecast.
However, the company’s financial performance has not removed concerns about how quickly viewers are increasing the amount of time they spend on the platform.
The Los Angeles Times reported that Netflix’s viewing hours grew by only 2% during the first half of 2026 compared with the same period a year earlier.
That represents slower growth in engagement, rather than a confirmed overall decline in viewing.
Competition for viewers intensifies
Netflix faces growing competition from subscription services including Disney+, Amazon Prime Video and HBO Max, alongside free video platforms such as YouTube.
These companies are competing for audiences at a time when viewers have more entertainment options and streaming providers face pressure to justify their spending on content.
Netflix has been expanding into advertising, live programming, sports and gaming as it looks for additional ways to attract viewers and generate revenue.
However, the company has not identified any single competitor or business segment as the sole cause of the job reductions.
Its leadership has instead presented the restructuring as part of a broader effort to concentrate resources on priorities expected to support future growth.
Failed Warner Bros. bid adds to industry changes
The layoffs follow Netflix’s unsuccessful attempt to acquire Warner Bros. Discovery’s streaming and studio assets.
Paramount Skydance ultimately secured the acquisition, leaving Netflix to pursue its expansion plans without the assets it had sought.
The outcome reflects wider consolidation across the entertainment industry, where major companies are reviewing costs, content investment and opportunities for growth.
However, there is no confirmed evidence that the failed acquisition directly caused Netflix’s latest workforce reductions.
Netflix prepares to release quarterly results
Netflix is scheduled to publish its third-quarter 2026 financial results on Tuesday, 20 October.
According to the company’s official investor relations announcement, the results and business outlook will be released at approximately 1:01 p.m. Pacific Time, followed by a management interview.
The figures are expected to provide further insight into the company’s revenue performance and financial outlook.
For now, the planned job cuts show that Netflix is reassessing its workforce and spending priorities despite remaining profitable.
Whether the restructuring improves its long-term performance will depend on its ability to maintain financial growth, strengthen viewer engagement, and compete effectively in a changing entertainment market.
