Netflix lays off about 1,000 staff, 6% of workforce, ahead of Oct. 20 earnings
Co-CEOs Ted Sarandos and Greg Peters told staff on Oct. 14 that Netflix is cutting about 6% of its workforce, mostly in product, technology, legal and human resources.
Netflix is laying off about 6% of its global workforce, roughly 1,000 employees, according to a memo from co-CEOs Ted Sarandos and Greg Peters sent to staff on Wednesday, Oct. 14, 2026. TechCrunch reported that the company confirmed the figure. The Wall Street Journal reported the cuts first.
It is larger than Netflix’s last major round of cuts, in 2022, which affected about 300 staffers. The announcement comes six days before the company’s third-quarter earnings report, which is due Tuesday, Oct. 20.
Where the cuts fall
TechCrunch and NBC News both reported that the cuts mainly affect product, technology, legal and human resources. Axios, citing a source, described the same mix.
In the memo, Sarandos and Peters said that the company will keep delivering for its members, partners, employees and investors by making focused choices across the business. They also wrote that delivering on its mission requires it to be disciplined about where it prioritizes its people and resources.
The memo also said Netflix will continue to invest aggressively in high-impact areas, according to NBC News and TechCrunch.
Two headcount figures
AV Club reported on Oct. 9 that Puck News had reported a cut of about 5%, or roughly 850 jobs on an estimated 17,000 staff. The Oct. 14 announcement is about 6%, close to 1,000 jobs, against 16,000 full-time employees at the end of 2025.
How the headcount figures differ
Reports before the announcement gave a smaller number. Puck News, citing anonymous sources, reported that Netflix was preparing to cut about 5% of staff. In an Oct. 9 article, AV Club put the total at about 850 jobs, based on an estimated 17,000 employees worldwide.
The confirmed figure is about 6%, or close to 1,000 jobs. TechCrunch notes that Netflix’s annual filing listed 16,000 full-time employees at the end of 2025. The reports use different staff figures, and they give roughly 1,000 jobs rather than an exact count.
A Netflix representative declined to comment on the Puck report, according to AV Club.
Slower growth and rising competition
NBC News reported that Netflix users watched more than 97 billion hours in the first half of 2026, up 2% from a year earlier. At a late-September Bloomberg conference, Sarandos said the company is not growing as fast as he wants it to.
TechCrunch reported that Netflix faces growing competition for viewer attention from YouTube, TikTok, Instagram and other social apps. It also reported, citing market research firms, that YouTube is said to have passed Netflix in average daily viewing in 2025.
TechCrunch also noted that Netflix lost its bid for Warner Bros. Discovery’s streaming and studio businesses to Paramount Skydance earlier this year. Netflix reported 2025 revenue of $45.2 billion and advertising revenue above $1.5 billion.
Axios reported that Netflix remains the most profitable streaming business among its competitors. It added that, unlike larger entertainment groups, Netflix lacks diversified income such as theme parks and consumer products, so subscriptions remain central to its business.
Most of the cuts would affect its product, tech, legal, and human resources departments.
What it means for content and the wider industry
The company says it remains on track to deliver its full-year forecast, per TechCrunch and Axios.
Netflix has been adding to its engagement offering. TechCrunch lists live events and sports, games and children’s programming, along with video podcasts, short-form video and a mobile app redesign. NBC News notes that the podcasts include licensed shows such as Bill Simmons’ The Ringer.
Other studios have also cut staff or are expected to. NBC News reported, citing a source, that Disney has cut hundreds of jobs this year under CEO Josh D’Amaro. It also reported that Skydance is widely expected to reduce staff across Paramount and Warner Bros. Discovery.
What happens next
Netflix’s third-quarter earnings report is due Tuesday, Oct. 20.
Photo: Coolcaesar at English Wikipedia · CC BY-SA 3.0 · via Wikimedia Commons
