Netflix cuts 1,000 jobs in largest-ever workforce reduction
Netflix is laying off approximately 1,000 employees, or 6% of its workforce, as co-CEOs cite slowing growth and a need for strategic prioritization.
Netflix has confirmed it is cutting about 1,000 jobs, representing roughly 6% of its workforce. Co-CEOs Ted Sarandos and Greg Peters announced the layoffs in an email to employees on Wednesday morning, framing the move as a necessary prioritization of resources.
The internal memo described the action as part of broader organizational changes. "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 co-CEOs wrote. The process for notifying affected staff will vary by country, with leaders contacting employees soon.
Scope and targeting of the layoffs
The job cuts will disproportionately affect product, technology, legal, and human resources teams. Several executives are among those departing, including notable figures from the film division.
Vice president Doug Belgrad, who joined Netflix in 2024 after a tenure at Sony and Columbia Pictures and worked closely with film chairman Dan Lin, is leaving. Sheroum Kim, director of independent films since 2019, and features manager Sebastian Hernandez are also departing.
Context within Netflix’s recent history and performance
This is the largest round of layoffs in Netflix's history. It follows smaller cutbacks since 2022, including several dozen members of the global product team let go earlier in 2026. The last major redundancy event was in 2022, when about 450 staff were cut.
The company's recent performance shows signs of strain. For the second quarter of 2026, Netflix posted revenue of $12.6 billion, a 13.4% year-over-year increase. This growth was slower than the 16.2% rate seen in the first quarter. The company then issued third-quarter revenue guidance below analyst expectations, forecasting 11.7% growth.
Investor concerns are mounting. Engagement on a per-user basis slowed in the first half of 2026, and the company's stock has fallen 15% since the start of the year. Shares were down 1.4% in Wednesday morning trading to $69.45. Netflix is scheduled to report its third-quarter 2026 earnings on Tuesday, October 20.
Ted Sarandos acknowledged the challenge last month. "Overall, we’re not growing as fast as I want us to, and we’re working on making that move faster," he said.
Broader industry and market pressures
The restructuring reflects wider pressures in the streaming sector. Netflix's share price decline may also be a reaction to its failed attempt to acquire Warner Bros., which was instead acquired by Skydance. Growing competition from platforms like YouTube is adding to the challenges.
Analyst Ross Benes noted that the layoffs show even top streaming companies face stagnation. With pressure mounting, Netflix will look to turn the tide by getting a boost from low-cost content, Benes added. Despite the cuts, Netflix remains the industry's biggest premium streaming provider with over 325 million global customers.
Netflix will inform the affected employees of their fate soon.
