Netflix layoffs cut about 1,000 jobs, 6% of staff, days before earnings

Netflix layoffs are back. The streamer is cutting about 6% of its global workforce, roughly 1,000 jobs, according to an internal memo first reported by The Wall Street Journal and later seen by Reuters and CBS News. It is the company's largest round of job cuts since 2022, and it lands less than a week before Netflix reports third quarter earnings on Oct. 20.

The timing is awkward for a company that insists things are going well. In the memo, co-CEOs Ted Sarandos and Greg Peters told staff that "our business is strong and growing" and that Netflix remains on track to hit its full year forecast. So why cut a thousand people? The short answer is that growth is getting harder, and investors have noticed.

What happened with the Netflix layoffs

The memo went out to employees on Wednesday, Oct. 14. According to Reuters, most of the cuts fall in four areas: product, technology, legal and human resources. CBS News reported the same list of departments.

Netflix had about 16,000 full time employees at the end of 2025, based on its SEC filings, so a 6% reduction works out to roughly 1,000 roles worldwide. The company declined to comment beyond the memo, CBS News said.

Peters and Sarandos framed the move as a matter of focus. Reuters quoted the memo as saying the company must be "disciplined about where we prioritize our people and resources." They also wrote that Netflix will keep investing in what they called high impact areas, without spelling out exactly which teams those are.

Trade outlets including Deadline and The Hollywood Reporter reported that several senior TV executives were among those let go, which suggests the cuts reach beyond back office functions. Netflix has not published a full breakdown by team or country.

How this compares to 2022

The last time Netflix cut this deep was in 2022, when it lost subscribers for the first time in more than a decade. Reuters noted that the company eliminated about 450 jobs across two rounds that year. This round is more than twice that size, and it comes at a moment when Netflix is still adding members and still profitable. That difference matters. In 2022 the layoffs were a reaction to a shock. This time they look more like a planned reset.

Why Netflix is cutting jobs now

On paper, Netflix is in decent shape. CBS News reported that the company earned $3.4 billion on revenue of nearly $12.6 billion in its second quarter, with earnings up 9% and revenue up 13% from a year earlier. S&P Global estimated Netflix ended 2025 with about 327.7 million subscribers.

The problem is the trend line, not the snapshot. A few pressures stand out.

Competition for screen time

Reuters reported that investors are worried about engagement, meaning how much time people actually spend watching Netflix. YouTube and TikTok run on free, user generated video, which gives them a big cost advantage. Netflix has to pay for almost everything it streams. When viewers drift to free platforms, each hour of Netflix viewing becomes more expensive to win.

Legacy media companies are also fighting harder. Earlier this month Paramount completed its $110 billion acquisition of Warner Bros. Discovery, according to Reuters, creating a much larger rival with a deep catalog. We covered the run up to that deal in our report on Paramount Skydance and Warner Bros. Discovery.

A failed deal and a falling stock

Reuters also pointed out that Netflix itself pursued Warner Bros. Discovery's streaming and studio assets earlier this year and came up short. That failed bid raised questions about the company's long term strategy.

The stock reflects the doubt. CBS News said shares traded just below $70 on Wednesday and had fallen nearly 43% over the past 12 months. Reuters put the year to date decline at about 25%. Shares rose 0.7% on the day the memo leaked, so the market did not treat the news as a crisis.

The search for a second business

Ross Benes, an analyst at eMarketer, told Reuters that Netflix has not found another major revenue line and that its subscription business may be nearing a ceiling. That is the core tension. Netflix is expanding into an ad supported tier, live programming and gaming, but none of those has yet grown big enough to replace the steady subscriber gains of past years. CBS News added that the North American market is largely saturated, so new members increasingly have to come from abroad, where prices are lower.

Cutting costs in product, tech and corporate functions is one way to protect margins while those newer bets mature.

Who is affected

The most direct impact falls on the roughly 1,000 employees losing their jobs. Product and engineering staff appear to take a large share, along with legal and HR teams. Netflix has not said how many cuts are in the United States versus other countries, or what severance terms look like.

For subscribers, nothing changes today. Your plan, price and catalog stay the same. Still, layoffs in product and technology teams can slow the pace of app features and experiments over time. If you are rethinking which streaming services you actually use, our guide to finding and canceling forgotten subscriptions walks through how to audit what you pay for on Apple, Google and Amazon.

For the wider industry, the cuts send a signal. Netflix has long been the benchmark that other streamers chase. If the market leader is trimming staff while saying business is strong, rivals under even more pressure may follow. Media and tech companies are also spending heavily to keep people inside their own apps, as seen in moves like Meta banning TikTok ads on Facebook and Instagram and Microsoft pushing Xbox into film, TV and theme parks.

What to watch next

The next big date is Oct. 20, when Netflix reports third quarter results. A few questions will shape how investors read the layoffs:

1. Guidance. The co-CEOs said Netflix is on track for its full year forecast. Analysts will want to see that confirmed and to hear what 2027 looks like.
2. Engagement numbers. Any data on viewing time will be read against the YouTube and TikTok threat Reuters described.
3. Ad tier progress. Advertising is the most likely second revenue line, so its growth rate will get close attention.
4. Restructuring costs. A layoff this size usually comes with a one time charge. How big it is, and when it hits, will matter for the quarter's profit.
5. Where the savings go. Peters and Sarandos promised to keep investing in high impact areas. Executives may be asked to name them on the earnings call, whether that means live sports, games or more spending on films and series.

The larger story is about a company moving from fast growth to careful management. Netflix is not in trouble the way it was in 2022. But it is clearly preparing for a market where subscriber gains come slower and every dollar has to work harder. For more coverage of big companies reshaping their businesses, visit our tech section.

Frequently asked questions

How many people is Netflix laying off?

About 1,000 employees, or roughly 6% of its global workforce, according to the internal memo reported by The Wall Street Journal, Reuters and CBS News.

Which Netflix departments are affected by the layoffs?

Most of the cuts are in product, technology, legal and human resources, according to Reuters and CBS News. Trade outlets reported that some senior TV executives were also let go.

Is Netflix in financial trouble?

No. The company is profitable and still growing. CBS News reported second quarter earnings of $3.4 billion on nearly $12.6 billion in revenue. The cuts reflect slowing growth and tough competition rather than losses.

When does Netflix report its next earnings?

Netflix is scheduled to report third quarter results on Oct. 20, 2026.