Netflix has announced it is laying off approximately 6% of its global workforce, a move affecting roughly 1,000 positions. In a memo to employees, co-CEOs Ted Sarandos and Greg Peters stated the cuts will impact the company's product, technology, legal, and human resources departments.
The reduction comes as the company navigates a saturated North American market and increased competition from other streaming services and YouTube. Although Netflix leaders described the business as "strong and growing," the company reported a need to make "focused choices" to continue investing in high-impact areas like advertising, live programming, and gaming.
According to a securities filing, Netflix employed roughly 16,000 full-time workers as of December 2025. This action represents the company's largest round of workforce reductions since 2022, when it cut hundreds of jobs following subscriber losses. Netflix declined to provide further comment on the specific timing or implementation of the cuts beyond the employee memo.
For the broader market and investors, the move follows a period of volatility for Netflix stock (NFLX), which traded at just below $70 per share on Wednesday, October 14, 2026. The share price has declined nearly 43% over the last 12 months and is down 21.71% since the start of 2026. The company is facing a landscape where media competitors are consolidating and platforms like YouTube are capturing a larger portion of both viewership and advertising budgets.
The job cuts follow a shift in strategy as Netflix moves beyond its traditional subscription-only model to diversify revenue through gaming and live events. While the company stated it remains on track to deliver its full-year forecast, the reduction in force across core technical and administrative departments indicates a tightening of operational spending. No specific dates for the finalization of these layoffs were reported, but Puck News previously indicated an official announcement was expected as early as the week of October 12, 2026.