Netflix is cutting around 1,000 jobs, marking its largest round of layoffs since 2022. The planned reductions represent approximately 6% of its workforce, according to an internal company memo. Co-CEOs Ted Sarandos and Greg Peters announced the decision on Wednesday, October 14, 2026.
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The cuts will mainly affect employees in product, technology, legal and human resources teams. In their memo, the executives said Netflix remained strong and continued to grow. However, they stressed the need to prioritise staffing and resources carefully. The company employed around 16,000 full-time workers at the end of 2025.
The layoffs come as Netflix faces stronger competition from YouTube, TikTok and other streaming platforms. Paramount’s completed acquisition of Warner Bros. Discovery has also brought Paramount+ and HBO Max under the same corporate umbrella. Netflix previously pursued Warner’s studio and streaming assets but withdrew its offer in February.
Despite reporting a $3.4 billion profit on revenue of $12.56 billion in the second quarter, Netflix faces concerns about its growth outlook. Its third-quarter revenue forecast fell short of analysts’ expectations. Sarandos also acknowledged last month that the company was not growing as quickly as he wanted. Netflix shares have fallen about 25% this year, although they rose 0.7% on Wednesday.
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Meanwhile, Netflix has expanded into advertising, live programming and gaming as it seeks new revenue sources. However, the company faces pressure to sustain subscriptions as competition increases. Disney has also reduced costs, cutting around 300 jobs last month. Netflix is scheduled to publish its quarterly results on October 20, providing investors with another update on its performance.