Netflix cutting about 1,000 jobs, 6% of staff, its largest layoff since 2022

Netflix is laying off roughly 1,000 employees, about 6% of its workforce, according to a memo from co-CEOs Ted Sarandos and Greg Peters that CNBC obtained. The cuts fall mostly on the product, technology, legal and HR teams. It is the company's largest round of job cuts since 2022, Fox Business reported, citing the Wall Street Journal, which first reported the cuts.

What the memo says

Per CNBC, the co-CEOs wrote that delivering on Netflix's mission "requires us to be disciplined about where we prioritize our people and resources." They also said the business "is strong and growing" and that Netflix remains on track to deliver its full-year forecast. Netflix gave no further comment to CNBC.

The timing matters: the company reports third-quarter results next Tuesday, and the memo's reassurance on the full-year forecast reads as a message to investors as much as to staff.

The scale

Fox Business, citing Netflix's annual filing with the SEC, said the company had about 16,000 full-time employees at the end of 2025, roughly 10,900 of them in the U.S. and Canada. A 6% cut on that base is consistent with the roughly 1,000 figure. Fox Business also noted that Puck News had earlier reported Netflix was preparing to cut about 5% of staff.

Why now

CNBC tied the cuts to comments Sarandos made last month at the Bloomberg Screentime conference, where he said Netflix was "not growing as fast as I want." CNBC described a company that remains profitable and the largest streamer, but whose viewing time has stagnated and whose recent subscriber growth leaned on the password-sharing crackdown and a cheaper ad tier. It also pointed to YouTube as the main threat and to the combined Paramount and Warner Bros. Discovery, which plans to merge its streaming services.

The choice of departments is the telling detail. Cuts in product, technology, legal and HR, rather than in content, suggest Netflix is trimming overhead while protecting what it spends on programming, live events and ads. That is an inference from the departments reported, not something Netflix has said.

What it means for business owners and investors

• Investors: watch the Oct. 20 report for operating margin and any change to the full-year outlook. Management has already said the forecast stands, so a cut to guidance would be a surprise.
• Employers: the layoffs follow Disney's cut of about 300 jobs last month, per CNBC. White-collar overhead roles in HR, legal and technology are where large media companies are trimming first.
• Small agencies and vendors: contractors who sell into large media companies' product and technology groups should expect procurement to tighten while teams are reorganized.

Sources: CNBC; Fox Business, citing the Wall Street Journal. This is market information, not investment advice.