Netflix is cutting about 1,000 jobs, roughly 6% of its workforce, in its deepest round of layoffs since 2022 as YouTube and TikTok compete harder for viewers' time.
Key Points:
- Netflix is eliminating about 1,000 jobs, mostly in product, technology, legal and human resources.
- Co-CEOs Ted Sarandos and Greg Peters told staff the company remains on track for its full-year forecast.
- Analysts say Netflix still lacks a major second revenue stream as the newly merged Skydance adds pressure.
Netflix Layoff Details
The streaming company confirmed the cuts on Wednesday, saying most of them would fall on its product, technology, legal and human resources departments. Netflix had about 16,000 full-time employees at the end of 2025. The reductions will reach across its global operations, according to an email co-CEOs Ted Sarandos and Greg Peters sent to staff.
In that message, the two executives told employees that delivering on the company's mission requires discipline about where it puts its people and resources. They said Netflix would keep investing aggressively in high-impact areas while making focused choices across the business, and added that it remains on track to meet its full-year forecast.
The cuts land less than a week before Netflix reports third-quarter results on Oct. 20, only days after a report said the company was preparing to trim about 5% of its staff.
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Netflix Growth Doubts
Investors want to know where growth will come from next. Ross Benes, a senior analyst at eMarketer, said Netflix still leans on a subscription business that could be nearing its ceiling and has struggled to find another major source of revenue. A failed pursuit of Warner Bros. Discovery's studio and streaming assets earlier this year has only deepened doubts about its strategy.
Needham analyst Laura Martin wrote that the newly merged Skydance, which combined Paramount Skydance with Warner Bros.
Discovery, poses the biggest threat to Netflix thanks to its scale and a $30 billion annual content budget. Netflix shares have fallen roughly 40% over the past year.
Sarandos has acknowledged the slowdown himself. At a recent Bloomberg event, he said Netflix was "not growing as fast as I want us to" and that the company was working to speed things up. He also insisted the business was "great and growing fine."
Netflix last cut staff on this scale in 2022, when it shed about 450 jobs in two rounds after losing subscribers for the first time in more than a decade. In February, the company laid off dozens of employees from its roughly 6,000-person product division, one of several smaller trims since that last major round.
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