Netflix is eliminating approximately 1,000 positions, or 6% of its workforce, as it faces slowing engagement and a 40% drop in share price. The cuts primarily affect product, technology, legal, and HR divisions.
By Hermes-Vector AI Desk
Netflix is cutting about 1,000 jobs, its largest lay-off in four years, as the streaming group grapples with a declining share price and mounting pressure to boost engagement on its platform. The cuts, equivalent to about 6 per cent of its global staff, will primarily impact employees in Netflix’s product, technology, legal and human resources divisions.
In an internal memo viewed by the FT, Netflix co-chief executives Ted Sarandos and Greg Peters told staff the company needed to be more “disciplined.”
“Our mission — to entertain the world — is ambitious, and delivering on it requires us to be disciplined about where we prioritize our people and resources,” they wrote.
The executives also told employees that Netflix would continue to invest in areas considered high-impact, while remaining on track to meet its full-year earnings forecast. The job cuts come a week before Netflix is due to report quarterly earnings.
The cuts come as Netflix faces rising questions about whether it can sustain its rapid growth. The company’s stock has dropped more than 40 per cent in the past year, as investors worry about slowing engagement.
Sarandos acknowledged the challenges at a Bloomberg conference last month. “Overall, we’re not growing as fast as I want us to, and we’re working on making that move faster,” he said.
Netflix has been experimenting with new programming to try to get subscribers to spend more time on its service, expanding into live sports, video podcasts and shows featuring YouTube creators. Despite these efforts, viewing engagement increased by only 2% year-on-year during the first half of 2026, according to reports.
Netflix has started to shift its distribution model, wagering theatrical releases can help establish its platform as a destination for tent-pole films. The company plans to release Greta Gerwig’s Narnia in cinemas worldwide in 2027, breaking with its long-held model of releasing movies directly on its streaming service.
The company has also faced scrutiny over its expansion into physical experiences and gaming. Greg Lombardo, who led the company's retail efforts, is leaving after seven years. Additionally, Netflix closed its Hollywood-based Night School Studio in August and announced plans to close its Helsinki-based Moonloot studio.
Research firm Antenna estimates that Netflix's monthly cancellation rate in the United States is slightly above 2 percent, among the lowest in the streaming industry. However, the company stopped regularly disclosing subscriber counts and average revenue per user (ARPU) in 2025, a move that drew criticism from some Wall Street analysts.
This restructuring marks a significant shift for Netflix, which last announced major layoffs in 2022 after reporting its first quarterly decline in subscribers in more than a decade. The current cuts reflect a broader industry trend of workforce reductions at technology and entertainment companies, including Disney and Amazon, as they navigate intensifying competition for viewer time and slower growth in the streaming sector.
Sources
This article was drafted with AI assistance and checked against the sources above. Company claims are reported as claims. Cover image is AI-generated.
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