Netflix has announced its largest round of layoffs to date, eliminating approximately 1,000 positions, or 6% of its global workforce. The decision, announced on October 14, 2026, comes as the streaming giant faces increasing competition for viewers despite maintaining strong financial performance.
According to an internal memo from co-CEOs Ted Sarandos and Greg Peters, the cuts will primarily affect Netflix’s product, technology, legal and human resources departments.
Why Is Netflix Cutting Jobs Despite Strong Profits?
The executives explained that the restructuring is intended to focus resources on areas expected to drive future growth.
“Our business is strong and growing, and we remain on track to deliver our full year forecast,” the memo stated.
Netflix reported $12.56 billion in revenue and approximately $3.4 billion in profit during the second quarter of 2026, representing year-over-year increases of 13% and 9%, respectively.
However, the company’s third-quarter revenue forecast fell below Wall Street expectations, raising concerns about slowing growth.
The layoffs highlight an important distinction: Netflix is reducing its workforce not because it is losing money, but while attempting to improve efficiency and sustain expansion.
How Do These Layoffs Compare With Netflix’s Previous Cuts?
The latest reduction is significantly larger than the approximately 450 jobs Netflix eliminated in 2022, following its first subscriber decline in more than a decade.
This time, the company faces a different challenge. Competition from Disney+, Prime Video, YouTube and other entertainment platforms has intensified, prompting Netflix to explore additional revenue opportunities through advertising, live programming and gaming.
Netflix employed approximately 16,000 full-time workers at the end of 2025.
The company is scheduled to announce its third-quarter financial results on October 20, 2026, potentially offering more insight into its restructuring strategy and future investments.
