Netflix Layoffs 2026: Why the Company Cut Around 1,000 Jobs

Netflix has cut around 1,000 jobs, affecting roughly 6% of its workforce. The layoffs were announced on 14 October 2026 and are the company’s largest round of job cuts since 2022.

Most of the affected employees work in product, technology, legal and human resources. Co-CEOs Ted Sarandos and Greg Peters told employees that Netflix needed to be more careful about where it puts its people and resources. They also said the business remained strong and was on track to meet its full-year forecast. (Reuters)

Why Is Netflix Laying Off Employees?

Netflix is competing for people’s time as well as their subscription money. Viewers can spend hours watching films and series on Netflix, scrolling through TikTok or watching free videos on YouTube. All three compete for the same limited attention.

Netflix is also spending money on more than its traditional streaming service. Advertising, live programming and gaming are part of its efforts to bring in more revenue.

These changes come with costs, and the company has to decide which teams and projects deserve the most investment. The October layoffs are part of that wider effort to manage its workforce and resources. Netflix has not said that the job cuts were caused by one specific problem.

Which Netflix Teams Were Affected?

The layoffs mainly affect four departments:

• Product: Employees working on Netflix’s platform and features.
• Technology: Teams responsible for developing and maintaining its technology.
• Legal: Employees handling contracts, legal matters and compliance.
• Human resources: Staff working on recruitment and other employee-related functions.

Netflix had around 16,000 full-time employees at the end of 2025, according to reports citing company filings. The cuts affect about 6% of its workforce, but a detailed breakdown of the number of jobs lost in each department has not been made public.

Netflix Is Still Growing, So Why Cut Jobs?

Netflix reported revenue of $12.87 billion for the third quarter of 2026, up 11.8% from the same period last year. Its earnings per share came in at 87 cents, above the 82 cents analysts had expected.

But the outlook for the next quarter was less encouraging.

Netflix forecast fourth-quarter earnings per share of 67 cents, below analysts’ expectations of 73 cents. It also lowered its expected advertising revenue for 2026 from $3 billion to around $2.7 billion. The company said some advertising features had taken longer than expected to roll out. Its shares fell nearly 6% in after-hours trading following the results. (Reuters)

The figures point to the challenge Netflix faces: revenue is growing, but some parts of the business are not progressing as quickly as expected. The company wants to keep investing in entertainment while improving results from its newer ventures.

The earnings report came after the layoffs, so it provides additional context rather than a complete explanation for the job cuts.

Will Netflix Cut More Jobs?

Netflix has not confirmed another round of layoffs in the reports cited here. The October announcement alone does not tell us whether further cuts are planned.

Employees and investors will be watching how the company handles its staffing, advertising business and spending on new content over the coming months.

For now, the confirmed reduction is around 1,000 jobs. Any further cuts remain unconfirmed.

Frequently Asked Question