Netflix plans to cut about 1,000 employees in its biggest round of layoffs since 2022. Co-CEOs Ted Sarandos and Greg Peters confirmed the move through an internal memo on Tuesday.
Puck News first reported the planned cuts earlier this month. At that time, the outlet estimated the company would cut about 800 positions. However, the final number came in closer to 1,000, as per Wall Street Journal.
Exclusive: Netflix is cutting about 1,000 jobs, its biggest round of layoffs in years as it struggles with slowing growth and customer engagement https://t.co/4kLKUmxN40
— The Wall Street Journal (@WSJ) October 14, 2026
The cuts affect roughly 6% of Netflix’s 16,000-person workforce. According to the memo, the company will mostly trim roles in product, technology, legal, and HR teams. Both executives wrote that the mission to “entertain the world” remains ambitious. They also called the business “strong and growing.”
However, Netflix shares tell a different story. The stock has dropped about 25% so far this year. Moreover, Q3 revenue guidance came in below analyst expectations after the Q2 earnings report. As a result, the stock fell further after the July earnings call.
Sarandos addressed the slowdown at a recent Bloomberg Screentime conference. “Overall, we’re not growing as fast as I want us to,” he said. He also added that the company wants to “make that move faster.” Additionally, user engagement rose just 2% year over year in the first half of 2026.
Netflix last carried out major layoffs in 2022. Back then, it cut about 450 jobs after losing 200,000 subscribers in Q1. That marked its first subscriber decline in over a decade. Earlier this year, it also trimmed several dozen roles on its global product team.
Meanwhile, the company continues to chase new revenue streams. It now offers an ad-supported tier, live programming, and gaming. Still, eMarketer analyst Ross Benes noted that “they haven’t been able to find another line of major revenue.”
The broader industry also faces similar pressure. Disney has carried out three rounds of layoffs this year under CEO Josh D’Amaro. In addition, after Paramount completed its $110 billion deal for Warner Bros. Discovery, CEO David Ellison warned of “difficult decisions” for the workforce.
Netflix will report Q3 2026 earnings on October 20 after market close.