The key facts

  • Netflix is cutting about 6% of its workforce — roughly 1,000 people, mainly in product, tech, legal and HR
  • According to WSJ, this is the largest layoff since 2022; the company had about 16,000 full-time employees at the end of 2025
  • Shares fell almost 43% over 12 months; the quarterly report is due October 20

The layoffs

Netflix announced on Wednesday, October 14, 2026, that it is cutting about 6% of its employees — around 1,000 people. The plans were communicated in an internal memo for employees, which The Wall Street Journal was first to report; CNBC and CBS News also cite the memo, and TechCrunch reports that the company confirmed the layoffs to the outlet directly. The cuts mainly affect the product, technology, legal and HR departments. According to WSJ, this is Netflix's largest workforce reduction since 2022. The company declined to comment further beyond the memo.

What the CEOs wrote

Co-CEOs Ted Sarandos and Greg Peters wrote in the memo: 'Our mission — to entertain the world — is ambitious, and delivering on it requires discipline in where we prioritize our people and resources.' They added: 'Our business is strong and growing, and we remain on track to deliver our annual forecast. We will continue to invest aggressively in high-impact areas to improve our service and further drive growth and innovation,' noting that this means 'focused choices' across the business for members, partners, employees and investors.

Context and figures

According to a regulatory filing, Netflix had about 16,000 full-time employees at the end of 2025. In 2025, the company generated about $45 billion in revenue ($45.2 billion per TechCrunch), up 16% from the year before but slower than pre-pandemic growth rates, CBS notes citing S&P Capital IQ. S&P Global estimates the number of subscribers at 327.7 million at the end of last year (+8.6% year over year). Shares, which traded just below $70 on Wednesday, have fallen almost 43% over the past 12 months. The quarterly report is expected on October 20.

Reasons and competitive backdrop

A few weeks before the announcement, Sarandos said at the Bloomberg Screentime conference that the company 'is not growing as fast as I want.' CNBC describes Netflix's paradox: a profitable company and streaming leader, but viewing time is stagnating, and subscriber growth was driven by the password-sharing crackdown and the cheap ad-supported tier. CNBC names YouTube as the main threat, with Skydance on the horizon: the combined Paramount and Warner Bros. Discovery structure plans to integrate the Paramount+ and HBO Max platforms. TechCrunch links the layoffs, in part, to Netflix's loss early this year in the battle for Warner Bros. Discovery's streaming and studio business, which went to Paramount Skydance. According to market research, social networks like TikTok are catching up with Netflix in engagement, and YouTube, as reported, surpassed Netflix in average daily viewing in 2025. In response, Netflix raised prices, expanded its ad-supported tier, and invested in live events, sports, games, kids' content, video podcasts, short-form video and a mobile app redesign. CNBC also notes that Netflix lacks 'water-cooler hits' like Stranger Things and Squid Game, and last month Disney announced layoffs of about 300 employees, mainly in HR and technology.