Netflix cuts 1,000 jobs in biggest layoff round since 2022: Here's why

Netflix is laying off roughly 6% of its workforce, about 1000 employees, in its largest round of job cuts since 2022, as per an internal memo.

Co-CEOs Ted Sarandos and Greg Peters announced the layoffs Wednesday, October 14, noting the product, tech, legal, and human resources teams would be most affected.

The co-CEOs wrote: “Our mission, to entertain the world, is ambitious, and delivering on it requires us to be disciplined about where we prioritise our people and resources. Our business is strong and growing, and we remain on track to deliver our full-year forecast.”

The company had about 16,000 full-time employees at the end of 2025. Netflix declined to comment beyond the memo.

The cuts come as Netflix faces intensifying competition from YouTube, TikTok, and a newly consolidated rival. However, the buyout of Warner Bros. Discovery by Paramount was completed recently, with the company renamed Skydance, and Paramount+ and HBO Max now under one umbrella. Initially, Netflix made an offer for Warner's studio and streaming properties but withdrew it in February.

Stocks of Netflix, whose price decreased by about 25% this year, gained 0.7% on Wednesday. Netflix will publish quarterly results on October 20.

Even though Netflix posted decent profit ($3.4 billion in Q2 with total revenue of $12.56 billion), Netflix's forecast of revenues in Q3 did not meet analysts' expectations. Co-CEO of Netflix, Sarandos, admitted that the company is "not growing as fast as I want" last month.

It seems that Netflix still needs subscriptions, a market reaching its limits.

Netflix developed several new business areas, such as ads, live and games. This decision came after cost reduction measures by Disney, which fired about 300 employees last month.