Experts say the layoffs look less like traditional downsizing and more like a major reallocation of resources.
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Netflix is cutting 6 percent of its staff, roughly 1,000 positions, according to a new email sent to employees on Wednesday.
The streaming service, led by Co-Chief Executives Greg Peters and Ted Sarandos, said most of the cuts would be in the company’s product, tech, legal, and human resources teams, as The Wall Street Journal first reported. The cuts are set to be made a week ahead of Netflix’s next quarterly earnings report.
“Our mission—to entertain the world—is ambitious, and delivering on it requires us to be disciplined about where we prioritize our people and resources,” the company told employees.
“Decisions like these are never easy, and we don’t take them lightly,” Peters and Sarandos added in the memo.
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Per regulatory filings, Netflix had about 16,000 full-time employees worldwide at the end of 2025. The upcoming layoffs will be the company’s biggest round of cuts since 2022, when Netflix laid off 450 people.
According to WSJ, in the memo to employees, Netflix’s executives said the company will “continue to invest aggressively in high-impact areas” but that doing so means “making focused choices across the business so we can keep delivering for our members, partners, employees and investors.”
Netflix made strategic cuts
In the company’s last earnings report for its second quarter, Netflix recorded revenue of $12.56 billion, up 13% year-over-year, driven primarily by membership growth, pricing, and increased ad revenue. However, the company did not elaborate on engagement metrics, besides stating it was “healthy.”