Netflix to Lay Off 6% of Workforce Amid Organizational Changes
The streaming giant is cutting nearly 1,000 positions as it reallocates resources for future growth and high-impact areas.
Netflix plans to lay off approximately 6% of its workforce, affecting nearly 1,000 employees, as part of broader organizational changes. The cuts will primarily impact the company's product, tech, legal, and human resources teams, according to a memo sent to employees Wednesday by Co-CEOs Greg Peters and Ted Sarandos.
In the memo, Peters and Sarandos stated that while the company's business remains strong, Netflix needs to be "disciplined about where we prioritize our people and resources." They emphasized the need to invest in future growth and "high impact areas to improve our service." Netflix declined to comment further on the specific details of Wednesday's layoffs.
This round of job cuts represents the largest since 2022 for the California-based company, which had about 16,000 full-time employees worldwide at the end of 2025, according to regulatory filings.
Despite the layoffs, Netflix has seen financial growth. In its second financial quarter, the company reported a profit of $3.4 billion and revenue of $12.56 billion, increases of 9% and 13% respectively, compared to the same period last year. However, Netflix's forecast for the third quarter fell short of Wall Street's expectations, with earnings for that period due to be reported next week.
The streaming landscape continues to become more competitive. Netflix maintains a dominant market share, accounting for 19% according to the latest data from streaming guide JustWatch, but rivals such as Amazon's Prime Video and Disney+ are closely following. Further consolidation in the industry was marked by the recent $81 billion buyout of Warner Bros. Discovery by Skydance, which plans to unify its streaming products over time.