Netflix is preparing a restructuring that would cut about 5% of its workforce, with an announcement possible as early as next week. The news comes from Puck’s Matthew Belloni, who cites unnamed sources. A Netflix spokesperson declined to comment, and the company hasn’t confirmed anything.
Puck says the restructuring “will impact” about 5% of employees. It’s not clear which departments would take the biggest hit, or whether the cuts would be global.
What 5% means in headcount
Netflix said it had about 16,000 full-time employees at the end of 2025, according to Variety. That puts a 5% cut at roughly 800 jobs. Puck uses a higher estimate of about 17,000 staff worldwide, which gives around 850. About 68% of Netflix’s employees, roughly 10,900, were in the US and Canada as of December.
The last major round came in 2022, when Netflix cut about 450 staff after its first quarterly subscriber loss in over a decade. Variety adds that smaller cutbacks have followed, including several dozen people from the global product team earlier this year.
Why now
Puck links the move to pressure on the company’s stock and weaker engagement growth. Netflix’s second-quarter results matched Wall Street forecasts, but its third-quarter revenue guidance came in below analyst expectations, and the share price fell.
Co-CEO Ted Sarandos acknowledged the slowdown last month at Bloomberg’s Screentime conference. “Overall, we’re not growing as fast as I want us to, and we’re working on making that move faster,” he said. Variety notes that engagement rose 2% year on year in the first half of 2026. Sarandos also pointed to live programming as a drag on that figure: it takes about 5% of the content budget but generates about 1% of viewing.
The timing matters for investors. Netflix reports third-quarter earnings on Tuesday, 20 October, after the market closes. Puck says investors will want to hear how co-CEOs Sarandos and Greg Peters plan to restart growth.
Layoffs are also spreading across the wider industry. We’ve recently covered Apple trimming engineering manager roles and more Xbox cuts as studios consolidate.
Has Netflix confirmed the layoffs?
No. A Netflix spokesperson declined to comment on the Puck report, so the 5% figure and the timing remain unconfirmed.
How many jobs could go?
Based on Netflix’s year-end 2025 figure of about 16,000 employees, around 800. Puck’s estimate of about 17,000 staff implies roughly 850.
When will we know more?
Puck says an announcement could come as early as next week. Netflix’s next earnings report is on 20 October.
