Netflix Cuts About 1,000 Jobs, 6% of Workforce, in Largest Layoff to Date
Netflix has laid off roughly 1,000 employees, about 6 percent of its workforce, in its largest cutbacks to date. Most cuts hit product, technology, legal, and HR teams, co-CEOs Ted Sarandos and Greg Peters said in a memo to staff.
Netflix Announces Its Largest Workforce Reduction
Netflix has laid off roughly 1,000 employees, about 6 percent of its workforce, in the streaming company's biggest round of job cuts to date. Co-CEOs Ted Sarandos and Greg Peters announced the reductions in a memo to employees on Wednesday, saying the changes are required to stay disciplined about where the company prioritizes its people and resources.
The layoffs fall hardest on Netflix's product, technology, legal, and HR teams. Sarandos and Peters said supporting departing workers is the top priority and that leaders will connect with affected employees soon. The company had about 16,000 full-time employees as of the end of 2025 and serves more than 325 million customers globally.
The cuts follow a smaller restructuring earlier in 2026, when Netflix let go of several dozen members of its global product team. The streamer's last major layoffs came in 2022, when it eliminated about 450 positions after reporting a net decline of 200,000 subscribers in the first quarter, its first such drop in more than a decade.
Growth and Outlook
Netflix posted $45.2 billion in revenue in 2025, up 16 percent, with net income of $11 billion, up 26 percent. For 2026, the company projects revenue of $51.0 billion to $51.4 billion, growth of 13 to 14 percent, and an operating margin of 31.5 percent.
"Our business is strong and growing, and we remain on track to deliver our full-year forecast," the co-CEOs wrote. They said Netflix will continue to invest aggressively in high-impact areas to improve its service and further drive growth and innovation.
Market Reaction Ahead of Earnings
Investors have been concerned that Netflix's engagement on a per-user basis slowed in the first half of 2026. The company reported second-quarter revenue of $12.6 billion, up 13.4 percent year over year, with an operating margin of 33.4 percent, down from 34.1 percent in the year-earlier period.
Netflix's third-quarter revenue guidance came in below analyst expectations, and shares were down 0.3 percent to $70.26 as of 10:10 a.m. ET on Wednesday, amid a decline in the broader market. The company is scheduled to report third-quarter 2026 results on Tuesday, Oct. 20, after the market close.
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