Netflix will lay off roughly 1,000 employees, representing about 6% of its global workforce, in its most significant reduction since 2022.
Co-CEOs Ted Sarandos and Greg Peters stated in a Wednesday memo that the business remains strong and on track to meet its financial targets, while also announcing staff cuts.
Our business is strong and growing, and we remain on track to deliver our full-year forecast
The greatest impact falls on Netflix's product, tech, legal and HR teams. The company's TV and film divisions have also been affected by the cuts.
The Hollywood Reporter identified Aaron Davidson, who manages adult animation comedy, and Dan Evans, who oversees original animation, as two executives let go this week from Netflix's animation division.
It is not yet known how deeply the reductions affect Netflix's animation unit, or if production artists and other staff members have lost their jobs.
Netflix's games division is also affected. Licia Prehn, who worked in HR at Next Games, confirmed on LinkedIn that she is leaving the company.
You all likely saw the news from Netflix yesterday. As a result, I will be leaving the company. I have truly loved working for Next Games and Netflix, and getting to work with such incredible people every day,
Netflix said it bought Next Games in 2022, but has not revealed the number of employees at the Finnish developer who will lose their jobs in the recent reductions.
The process of notifying affected employees will vary somewhat by country, and leaders will be connecting with impacted employees soon.
Financial performance and future outlook
In 2025, the company reported revenue of $45.2 billion and net income of $11 billion, representing rises of 16% and 26% respectively. At the end of that year, Netflix employed roughly 16,000 full-time workers.
Netflix expects 2026 revenue of between $51 billion and $51.4 billion. In 2025 Netflix reported an increase in ad revenue to over $1.5 billion.
| Metric | 2025 Actuals | 2026 Forecast / Context |
|---|---|---|
| Revenue | $45.2 billion | $51 billion to $51.4 billion |
| Net Income | $11 billion | Not specified for 2026 |
| Workforce | 16,000 employees | Reduced by ~1,000 (6%) |
| Previous Major Cuts | ~450 jobs (2022) | 1,000 jobs (Current) |
Strategic challenges and competition
The Hollywood Reporter noted that viewer engagement on Netflix has stalled recently, which poses a challenge as the firm expands its ad-supported tier. Investors worry about slowing engagement and rising competition from free services like YouTube.
Social media platforms including TikTok, Instagram and YouTube are competing fiercely with Netflix for daily viewing time and user attention.
Overall, we're not growing as fast as I want us to, and we're working on making that move faster.
To boost engagement, Netflix has invested in sports, live events, gaming and kids' shows, while also betting on AI tools and video podcasts. The service is also testing short-form clips and updating its mobile app to rival social networks for user attention.
Ross Benes, a senior analyst at eMarketer, said Netflix has failed to secure another major revenue stream and depends on subscriptions that may be nearing a saturation point.
Eventually, because they're nearing a ceiling with that, they'll need another revenue stream to diversify, and that's where it's been more of a struggle,
Industry context and historical comparisons
Tech firms such as Amazon and Oracle have cut costs and jobs to fund AI infrastructure development. TrueUp reports that global tech layoffs in 2026 have totaled an estimated 644 rounds, affecting approximately 1,93,698 people at a rate of 677 per day.
TrueUp data shows that the tech sector saw layoffs impact more than 2,45,953 individuals in 2025, averaging 674 people per day.
Netflix previously cut roughly 450 positions in 2022 after subscriber numbers dropped by 200,000 in the first quarter, though accounts of that earlier reduction vary.
Discrepancies in 2022 Layoff Figures
Report A (S3, S6)
2022 Layoffs
~450 jobs
- Occurred after subscriber loss
- Described as major round
Report B (S2)
May 2022 Cuts
150 staffers
- Mostly in the U.S.
- Included scrapping animated projects
Earlier in 2026, the firm executed minor reductions, which included roles in its global product team.
