Los Gatos, California | October 15, 2026
Netflix is laying off approximately 1,000 employees, representing around 6% of its workforce, in its largest round of job cuts since 2022. The move comes as the streaming giant faces intensifying competition for viewers and growing investor concerns about its long-term growth prospects.
The layoffs are expected to affect employees across product, technology, legal and human resources teams. In an internal communication, co-CEOs Ted Sarandos and Greg Peters said the company was making organisational changes to prioritise its resources and support future growth.
Product and Technology Teams Among the Most Affected
The majority of the job reductions are expected to come from Netflix’s product, technology, legal and HR departments. The company had approximately 16,000 full-time employees at the end of 2025.
Netflix said its business remained strong and that it was on track to meet its full-year financial forecast. The company also indicated that it would continue investing in areas intended to improve its streaming service and drive innovation.
Competition for Viewers Intensifies
Netflix faces growing competition from traditional media companies and digital platforms such as YouTube and TikTok. These services compete for audiences’ time through a combination of professional programming and free, user-generated content.
Investor concerns have also focused on viewer engagement, including the amount of time subscribers spend watching Netflix. Analysts have questioned whether subscription revenue alone can sustain the company’s growth over the longer term.
Netflix Looks Beyond Subscriptions
The company has been exploring additional revenue sources through advertising-supported subscriptions, live programming and gaming. These initiatives are intended to diversify its business beyond traditional subscription fees.
Netflix also lost its pursuit of Warner Bros. Discovery’s streaming and studio assets earlier this year, with Paramount completing the acquisition in October. The outcome added to scrutiny of Netflix’s strategic direction as competition across the entertainment industry increases.
Biggest Layoff Round Since 2022
Netflix’s previous major workforce reductions occurred in 2022, when it eliminated around 450 positions following a subscriber decline. The latest cuts mark a significant restructuring as the company seeks to balance investment, operating costs and future growth.
Netflix is scheduled to report its third-quarter 2026 financial results on October 20. Investors will be watching its revenue performance, subscriber engagement and outlook for the remainder of the year.
