IT · 2026-10-15
Netflix to Lay Off About 1,000 Employees, or 6% of Workforce
In a memo sent to employees, Netflix co-CEOs said the company will cut about 6% of its workforce, or roughly 1,000 people. Product, technology, HR, and legal teams are expected to be most affected.
Netflix says it plans to lay off about 1,000 employees, equal to roughly 6% of its total workforce. Last week’s reports had put the figure at 5%, but a memo sent to employees by co-CEOs Ted Sarandos and Greg Peters said the number was 6%, according to Variety, which obtained a copy of the memo.
The layoffs are expected to affect employees mainly in product, technology, human resources, and legal. In the memo, the CEOs explained that to advance the company’s goals, Netflix needs to make disciplined decisions about where to prioritize its people and resources. At the same time, they said the company will continue investing in areas that have the greatest impact on improving the service, driving growth, and supporting innovation.
This appears to be the largest round of layoffs Netflix has carried out so far. The company had previously cut 150 jobs in May 2022 to reduce costs after revenue growth slowed, and later added another 300 cuts in June of the same year. The latest announcement stands out because it involves far more employees than those earlier rounds, drawing attention to the company’s approach to organizational management.
Even as Netflix announced the workforce reduction, it said it would continue investing in areas with strong growth potential. According to financial figures presented in the article, Netflix reported 2025 revenue of $45.2 billion and net income of $11 billion, with 325 million subscribers. Advertising revenue also reportedly more than doubled year over year to $1.5 billion in 2025. Still, with business growth and layoffs happening at the same time, an important question going forward will be which businesses and teams the company chooses to concentrate its resources on while trimming costs.
← Back to articlesThe layoffs are expected to affect employees mainly in product, technology, human resources, and legal. In the memo, the CEOs explained that to advance the company’s goals, Netflix needs to make disciplined decisions about where to prioritize its people and resources. At the same time, they said the company will continue investing in areas that have the greatest impact on improving the service, driving growth, and supporting innovation.
This appears to be the largest round of layoffs Netflix has carried out so far. The company had previously cut 150 jobs in May 2022 to reduce costs after revenue growth slowed, and later added another 300 cuts in June of the same year. The latest announcement stands out because it involves far more employees than those earlier rounds, drawing attention to the company’s approach to organizational management.
Even as Netflix announced the workforce reduction, it said it would continue investing in areas with strong growth potential. According to financial figures presented in the article, Netflix reported 2025 revenue of $45.2 billion and net income of $11 billion, with 325 million subscribers. Advertising revenue also reportedly more than doubled year over year to $1.5 billion in 2025. Still, with business growth and layoffs happening at the same time, an important question going forward will be which businesses and teams the company chooses to concentrate its resources on while trimming costs.