The company will eliminate around 1,000 jobs globally in its largest round of layoffs since 2022. In a memo to employees, co-CEOs Greg Peters and Ted Sarandos confirmed the move.
Netflix has confirmed a new round of layoffs that will affect approximately 6% of its global workforce, equivalent to around 1,000 jobs, according to the Associated Press, which cited a memo sent to employees on Wednesday by the company’s co-CEOs, Greg Peters and Ted Sarandos.
The confirmation comes days after reports emerged that a new restructuring could affect 5% of the streaming giant’s workforce. The announcement clarifies the scale of the cuts, which represent the company’s largest workforce reduction in several years.
According to the internal memo, the product, technology, legal and human resources teams will be the most affected. The executives explained that the decision is part of a series of organizational changes aimed at prioritizing the company’s resources and supporting its growth plans.
“Decisions like this are never easy and we don’t take them lightly,” Peters and Sarandos said in the memo, adding that their immediate priority would be to support affected employees throughout the transition. The process will vary by country, and team leaders will communicate directly with the employees involved.
The executives maintained that Netflix’s business remains strong and that the company is on track to meet its financial forecasts for the year. However, they emphasized the need to make selective decisions about staffing and resource allocation to continue investing in high-impact areas, improve the service, and drive growth and innovation.
Restructuring Amid Growing Competition
The layoffs come amid intensifying competition among streaming platforms and mounting pressure to sustain growth in an increasingly consolidated market. Netflix maintains a leading position in the industry but faces competition from services such as Amazon Prime Video and Disney+, as the sector continues to undergo consolidation.
Financially, the company reported revenue of US$12.56 billion and earnings of US$3.4 billion in the second quarter of 2026, representing year-over-year increases of 13% and 9%, respectively. However, its third-quarter projections fell short of Wall Street expectations.
Netflix had approximately 16,000 full-time employees worldwide at the end of 2025, according to its regulatory filings. The announced reduction therefore represents a significant adjustment to its global workforce.
The company is scheduled to report its next quarterly results next week, as investors continue to monitor its financial performance and the strategic decisions it is making to sustain growth.
