Netflix disclosed on Wednesday that it will eliminate approximately 1,000 positions, representing about six percent of its total staff. The cuts target employees in the product, technology, legal and human‑resources departments, according to an internal memo obtained by Variety.
Company rationale
Co‑CEOs Ted Sarandos and Greg Peters wrote that the streaming giant’s mission – “to entertain the world” – requires disciplined decisions about where to prioritize people and resources. They emphasized that the reductions are part of broader organizational changes intended to focus on areas the company deems critical for future growth.
“Our business is strong and growing, and we remain on track to deliver our full‑year forecast,” the executives added, underscoring confidence in the company’s financial outlook despite the workforce reduction.
Financial backdrop
Netflix reported $45.2 billion in revenue for 2025, a 16 percent increase over the prior year, and net income of $11 billion, up 26 percent. For 2026 the company projects revenue between $51 billion and $51.4 billion, reflecting expected growth of 13 percent to 14 percent.
The layoffs follow earlier reductions, including a 2022 round that cut roughly 450 jobs after Netflix experienced its first quarterly subscriber decline in more than a decade, and a smaller set of cuts to its global product team earlier this year.
Impact on employees
In the memo, Sarandos and Peters acknowledged the difficulty of the decision, stating, “Decisions like these are never easy, and we don’t take them lightly.” They said company leaders will reach out personally to affected workers and that the top priority is to support those leaving the company.
Netflix did not immediately respond to a request for comment on the announcement.
Looking ahead
Netflix employs roughly 16,000 full‑time staff members as of the end of 2025. The upcoming third‑quarter earnings report, scheduled for Tuesday, Oct. 20, will provide further insight into how the company’s restructuring aligns with its financial targets.
While the job cuts represent the largest workforce reduction in Netflix’s history, the company’s leadership frames the move as a strategic realignment aimed at sustaining growth and delivering on its entertainment mission.
Original reporting: NBC4 Los Angeles — read the source article.
