Netflix is set to cut approximately 1,000 jobs, representing about 6% of its workforce, in its biggest round of layoffs since 2022, as the streaming giant faces mounting pressure to accelerate growth and compete for viewers in an increasingly crowded entertainment market.
The job cuts were announced on Wednesday, October 14, 2026, in a memo to employees from co-chief executive officers Ted Sarandos and Greg Peters, according to reports by CNBC and the Wall Street Journal. The reductions will largely affect the company’s product, technology, legal and human resources teams.
The planned layoffs come as Netflix seeks to improve operational efficiency while expanding beyond its traditional subscription-based streaming model into advertising, live programming, podcasts and gaming.
In the memo, the co-CEOs said the company needed to make difficult decisions about how it allocates its workforce and resources to sustain its ambitions.
“Our mission — to entertain the world — is ambitious, and delivering on it requires us to be disciplined about where we prioritize our people and resources,” the executives said.
The company also said its business remained strong and that it was on track to meet its full-year financial forecast, while pledging to continue investing in areas expected to improve its service and drive growth.
Netflix Faces Pressure to Sustain Growth
The layoffs come at a critical time for Netflix, which has spent recent years diversifying its revenue sources as competition for viewers intensifies.
Although the company remains one of the world’s largest paid streaming platforms, it faces growing competition from free video services such as YouTube and Tubi, alongside established entertainment rivals including Disney and other major media groups.
The company had approximately 16,000 full-time employees at the end of 2025, according to reports citing its workforce figures. A reduction of about 1,000 positions would therefore represent roughly 6% of its workforce.
Netflix has also faced questions from investors about the pace of audience growth and the amount of time subscribers spend watching its content.
The company’s viewing hours increased by 2% in the first half of 2026 to approximately 97 billion hours. However, its share of television viewing in the United States fell from 9% in December 2025 to 7.8% in July 2026, according to Nielsen data cited by Business Insider. YouTube accounted for 14.2% of US television viewing in July, while Disney’s streaming services recorded 4.7%.
Netflix also raised subscription prices in March 2026. Its standard ad-free plan increased from $17.99 to $19.99 per month, while its ad-supported plan rose from $7.99 to $8.99.
