Netflix has announced plans to cut nearly 1,000 jobs, affecting about 6% of its global workforce, in its largest round of layoffs since 2022. Announced on 14 October 2026, the cuts will mainly affect its product, technology, legal and human resources teams.
The company, headquartered in Los Gatos, California, says it remains on track to meet its annual financial forecast, even as competition for viewers intensifies. Its second-quarter revenue reached $12.56 billion, up 13% year on year, yet its outlook for the following quarter fell short of Wall Street expectations.
This decision raises a concern for Netflix and its rivals, as streaming continues to generate billions while companies face pressure to reduce their workforces.
Treasure Ayanfe Adetula
Why Is Netflix Cutting 1,000 Jobs?
In a memo to employees, co-chief executives Ted Sarandos and Greg Peters said the company needed to be more selective about how it allocated its resources. “Our mission, to entertain the world, is ambitious, and delivering on it requires us to be disciplined about where we prioritise our people and resources,” they wrote, according to TechCrunch.
The executives said Netflix would continue investing in areas that could improve its service and support future growth. The company has not publicly detailed every role affected by the latest cuts.
Still, its financial results suggest the decision is not simply a response to falling revenue. According to its second-quarter financial results, Netflix increased revenue from $11.08 billion a year earlier to $12.56 billion. Its net income also rose to $3.4 billion.
The cuts, therefore, point to an effort to control costs and direct resources towards areas management believes can deliver stronger returns. Even a profitable business may restructure if its leaders believe its existing operations need to become more efficient.
The Fight for Viewers and New Revenue
Netflix's challenge extends beyond attracting subscribers. It must also give people reasons to keep watching, renew their subscriptions and choose its content over alternatives such as Disney+, Amazon Prime Video, YouTube and TikTok.
That competition has pushed streaming platforms to explore new ways of earning money. Netflix has introduced an advertising-supported subscription tier and expanded into live programming, video podcasts and gaming. These initiatives could help it attract different audiences and generate revenue beyond traditional subscriptions, but they also require investment.
According to Reuters, Netflix shares fell after its financial outlook disappointed investors. The company also reduced the frequency of its viewing-hours reports, having stopped reporting quarterly subscriber numbers in 2025.
These changes do not prove that viewers are leaving the platform. However, they highlight the difficulty of measuring audience engagement as the business evolves. Producing expensive films and series does not guarantee that viewers will remain subscribers, making it important for Netflix to balance content spending with sustainable revenue growth.
Subscribe for free to continue reading this article
Subscribe SubscribeAlready have an account? Log in
