Netflix to Cut About 1,000 Jobs in Biggest Layoffs in Years
Netflix is cutting about 6% of its worldwide workforce, or nearly 1,000 jobs, in its biggest round of layoffs in years.
Co-CEOs Greg Peters and Ted Sarandos announced the cuts Wednesday in a memo to employees, which was obtained by the Associated Press. The streaming giant had about 16,000 full-time employees worldwide at the end of 2025, according to regulatory filings.
Which Teams Are Affected
The product, tech, legal and human resources teams will be hit hardest by the cuts, according to the memo. The Wall Street Journal, which first reported the news, said they are Netflix's biggest job cuts since 2022.
The memo pointed to "organizational changes." Peters and Sarandos said the business remains strong, but that Netflix needs to be "disciplined about where we prioritize our people and resources" as it invests in future growth and "high impact areas to improve our service."
"Decisions like these are never easy, and we don't take them lightly," the executives wrote. Netflix declined to comment further, and the memo did not include details about severance.
Growth Is Slowing
The layoffs come as Netflix tries to reignite growth. Speaking at Bloomberg's Screentime event about a month ago, Sarandos acknowledged the company could be doing better.
"Overall, we're not growing as fast as I want us to, and we're working on making that move faster," Sarandos said, according to Forbes. He added, "The business is great and growing fine."
Netflix has still been profitable this year, helped by new memberships and price increases. In the second quarter, it earned $3.4 billion on revenue of $12.56 billion, up 9% and 13%, respectively, from a year earlier. However, its third-quarter forecast came in below Wall Street's expectations. The company is set to report its latest earnings next week.
Netflix led the streaming business for more than a decade, setting off an arms race among studios that produced more than 200 streaming services. After its pandemic-era subscriber boom leveled off, Netflix shifted its focus from signing up new customers to making more money from the ones it has. That strategy has included a crackdown on password sharing, a cheaper ad-supported plan and more live programming, such as NFL games and boxing.
Fighting for Viewers' Attention
Netflix is facing growing competition, not just from other streaming services but from social media apps. YouTube, TikTok and Instagram are all fighting for the same screen time, TechCrunch reported. Market research firms say TikTok is catching up to Netflix on user engagement, and YouTube reportedly surpassed Netflix in average daily viewing in 2025.
To keep people watching, Netflix has invested in live events, sports, games and children's programming. It has also redesigned its mobile app, tested short vertical videos, added video podcasts and rolled out AI-powered search to help viewers find shows. The company has also raised prices and expanded its ad-supported tier to get more value out of each subscriber. Netflix said its ad revenue topped $1.5 billion in 2025, when total revenue reached $45.2 billion.
A Shifting Streaming Landscape
Netflix holds about 19% of the streaming market, according to JustWatch data, with Amazon's Prime Video and Disney+ close behind.
The competition just got tougher. Last week, Paramount closed its $81 billion purchase of Warner Bros. Discovery, bringing HBO Max and Paramount+ under the same roof. The combined company plans to merge its streaming products "into a single service over time."
Netflix had agreed to buy Warner's studio and streaming business late last year but walked away from the deal in February. With earnings due next week, investors will be watching closely for more details on how the company plans to grow.
Curious for more stories that keep you informed and entertained? From the latest headlines to everyday insights, YourLifeBuzz has more to explore. Dive into what’s next.