Netflix is laying off about 1,000 people, roughly 6% of its workforce, in the largest round of cuts in its history. Variety obtained the memo that co-CEOs Ted Sarandos and Greg Peters sent to staff on Wednesday morning. It says the greatest impact will fall on the product, tech, legal and HR teams.
The announcement confirms what Puck reported last week, which we covered at the time, though the final number is higher. Puck’s sources put the cut at about 5%, or 800-850 jobs. Netflix had about 16,000 full-time employees at the end of 2025, so 6% works out to just under 1,000. A Netflix spokesperson told Variety the company had nothing to add beyond the memo.
Sarandos and Peters frame the move as prioritisation, not distress. The memo describes “organizational changes” and says Netflix must be “disciplined about where we prioritize our people and resources.” They add that the business is strong, remains on track for its full-year forecast, and will keep investing “aggressively” in high-impact areas. The memo says the process will vary by country, with leaders contacting affected employees soon.
The numbers back up the “strong business” line, but there’s pressure underneath. Netflix reported 2025 revenue of $45.2 billion (up 16%) and net income of $11 billion (up 26%), and it projects 2026 revenue of $51.0-51.4 billion, up 13-14%, at a 31.5% operating margin. Yet Variety notes that investors have worried about slowing per-user engagement in the first half of 2026. In the second quarter, revenue rose 13.4% to $12.6 billion and operating margin slipped to 33.4% from 34.1% a year earlier. Netflix’s third-quarter revenue guidance came in below analyst expectations, pushing the stock down. Shares were down 0.3% at $70.26 as of 10:10am ET on Wednesday.
The cuts dwarf anything Netflix has done before. In 2022 it let go of about 450 staff after its first net subscriber loss in more than a decade, and it has made smaller trims since, including several dozen people on the global product team earlier this year. This round comes six days before Netflix reports third-quarter earnings on Tuesday, 20 October, after the US market closes, when Sarandos and Peters will face questions about growth and costs.
Netflix isn’t alone in trimming headcount while profits hold up. Disney recently cut hundreds of jobs, and EA has made further cuts ahead of its planned $55 billion takeover.
Which Netflix teams are affected by the layoffs?
The memo says the greatest impact is on product, tech, legal and HR. Netflix hasn’t published a full breakdown by team or country, and it says the process will vary by country.
How many people is Netflix laying off?
Netflix’s memo says roughly 6% of staff, which Variety puts at about 1,000 jobs. The company had about 16,000 full-time employees at the end of 2025.
When does Netflix report its next earnings?
Netflix reports third-quarter 2026 earnings on Tuesday, 20 October, after the US market closes.
