Netflix plans to eliminate about 6% of its workforce, or nearly 1,000 jobs, as the streaming company undertakes broader organizational changes.
Co-CEOs Greg Peters and Ted Sarandos disclosed the layoffs in a memo sent to employees Wednesday. The product, technology, legal and human resources divisions are expected to bear the greatest impact.
“Decisions like these are never easy, and we don’t take them lightly,” Peters and Sarandos wrote in the memo, obtained by The Associated Press. The executives said Netflix’s business remains strong, but added that the company must be “disciplined about where we prioritize our people and resources” while investing in future growth and “high impact areas to improve our service.”
Netflix declined to provide additional comment on Wednesday’s job cuts beyond the message from its co-chief executives.
The company’s profit has increased this year, helped by new subscriber signups and price hikes. During its second financial quarter, Netflix reported $3.4 billion in earnings and $12.56 billion in revenue—up 9% and 13%, respectively, from the same quarter a year earlier.
Even so, Netflix’s outlook for the third quarter came in below Wall Street forecasts. The company is scheduled to release those results next week.
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The streaming market is becoming increasingly competitive. Netflix remains the industry’s leading player, with a 19% share according to the latest data from streaming guide JustWatch, while Amazon’s Prime Video and Disney+ continue to trail closely behind.
HBO Max and Paramount+ are now part of the same corporate operation, Skydance, following the completion last week of Paramount’s $81 billion acquisition of Warner Bros. Discovery. The newly formed Hollywood company plans to combine its streaming platforms “into a single service over time.” Netflix had initially reached an agreement late last year to acquire Warner’s studio and streaming operations, but withdrew its offer in February.
Regulatory filings show that Netflix employed roughly 16,000 full-time workers worldwide at the end of 2025. Wednesday’s announcement represents the California-based company’s largest round of layoffs in years.
The Wall Street Journal was the first to report the layoffs Wednesday.
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