Update, October 16: we have merged our Netflix layoffs coverage into a single, fuller report. Read the latest version here.
Netflix is cutting about 1,000 jobs, roughly 6% of its workforce, in the biggest layoff in the streaming company’s history. Co-CEOs Ted Sarandos and Greg Peters announced the Netflix layoffs in a memo to employees on Wednesday, October 14, which was obtained by both Variety and CNBC. Here is what the company said, why it is happening now, and what it could mean for your subscription.
What Netflix announced
The cuts land hardest on Netflix’s product, technology, legal and HR teams, according to the memo. Netflix had about 16,000 full-time employees at the end of 2025, so this round removes roughly one in every 16 roles at the company.
“Decisions like these are never easy, and we don’t take them lightly,” the co-CEOs wrote. “Our top priority today is to support those who are leaving.” Affected staff will hear from their leaders directly, and the process will vary by country.
The company stressed this is not a distress move. “Our business is strong and growing, and we remain on track to deliver our full-year forecast,” the memo said, adding that Netflix will “continue to invest aggressively in high-impact areas” while making “focused choices across the business.”
Why Netflix is cutting now
The timing looks paradoxical. Netflix is the industry’s biggest premium streamer with more than 325 million customers worldwide. In 2025 it booked $45.2 billion in revenue (up 16%) and $11 billion in net income (up 26%), and it projects $51.0 to $51.4 billion in revenue for 2026, according to Variety. But investors have been worried that engagement per user slowed in the first half of 2026.
CNBC reports that viewing time has stagnated even as profits grew, and that recent subscriber gains have leaned on the password-sharing crackdown and the cheaper ad-supported tier rather than breakout hits like “Stranger Things” or “Squid Game.” Sarandos himself said at the Bloomberg Screentime conference last month that the company was “not growing as fast as I want.” YouTube remains the biggest rival for viewers’ attention, and Skydance, the combined Paramount and Warner Bros. Discovery entity, plans to integrate Paramount+ and HBO Max into one stronger competitor.
Netflix is also not the only media giant trimming staff. Disney said last month it would lay off around 300 employees, mostly in human resources and technology roles, CNBC reported.
The last major Netflix layoffs came in 2022, when about 450 staffers were let go after the company’s first subscriber decline in more than a decade. A smaller round earlier in 2026 cut several dozen members of the global product team.
What the Netflix layoffs mean for your subscription
For viewers, nothing changes today. The memo did not mention subscription prices, plan changes, or any specific shows, and Netflix says it will keep investing in the service, including areas like live sports, documentaries and video games that it has expanded into in recent years.
The next real checkpoint is Tuesday, October 20, when Netflix reports third-quarter earnings after market close. The company’s guidance disappointed Wall Street last quarter, so investors and subscribers alike will be watching for whether the outlook improves. Netflix shares slipped about 1.4% to $69.45 on Wednesday amid a broader market decline, according to Variety.
Key dates at a glance
October 14, 2026: Memo to staff announces roughly 1,000 layoffs, about 6% of the company
October 20, 2026: Third-quarter earnings report after US market close
2022: Previous biggest round of cuts, about 450 jobs
