Netflix is cutting approximately 1,000 jobs, representing 6% of its workforce, in its largest round of layoffs since 2022. The layoffs will affect several departments as the company reassesses its staffing needs and spending.
According to Variety, co-CEOs Ted Sarandos and Greg Peters announced the cuts in an internal email to employees on October 14, 2026. The decision comes as Netflix faces increasing competition and looks to balance its investments with its long-term growth plans.
Netflix’s layoffs will hit product, technology, legal, and HR teams
The reductions will impact several departments involved in Netflix’s day-to-day operations. These include product, technology, legal, and human resources teams.
The co-CEOs addressed the layoffs in an internal memo. They said the company would continue investing in growth while making careful decisions about hiring and spending. “Our business is strong and growing, and we remain on track to deliver our full-year forecast,” Sarandos and Peters said in the memo.
“We’ll continue to invest aggressively in high-impact areas to improve our service and further drive growth and innovation. Doing that means making focused choices across the business so we can keep delivering for our members, partners, employees, and investors,” they added.
Netflix expects 2026 revenue to range from $51 billion to $51.4 billion, representing year-over-year growth of 13% to 14%. The company also forecasts a full-year operating margin of 31.5%. The company had around 16,000 full-time employees at the end of 2025. Its last major layoffs came in 2022, when it cut about 450 jobs after losing 200,000 subscribers in the first quarter. It has made smaller cuts since then, including some in its global product team earlier in 2026.
The latest cuts arrive ahead of Netflix’s third-quarter earnings report, scheduled for October 20. In the second quarter, Netflix reported $12.6 billion in revenue, up 13.4% from the previous year. Its operating margin, meanwhile, declined to 33.4% from 34.1% a year earlier.
Investors will look at the upcoming results to understand Netflix’s financial performance and growth plans. The company will also need to balance new investments with efforts to reduce costs.
Originally reported on ComingSoon.net.
