Netflix to cut 1,000 jobs in the company’s largest reduction since 2022 as competition rises

Netflix is cutting about 1,000 jobs worldwide, or roughly 6% of its workforce, in the company’s largest reduction since 2022, according to Fox Business. The layoffs come as the streaming leader faces slower growth, stronger competition, and rising pressure to invest carefully.

The cuts were outlined in an internal memo from co-CEOs Ted Sarandos and Greg Peters. Per Fox Business, the reductions will primarily affect product, technology, legal, and human resources teams.

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Layoffs target key corporate teams

Netflix had about 16,000 full-time employees at the end of 2025, according to company regulatory filings cited by Fox Business. The planned reductions would represent about one in every 16 employees.

In the memo obtained by CNBC, Sarandos and Peters said the company’s mission to entertain audiences worldwide requires discipline in deciding where to place employees and resources. They also said Netflix remains on track to meet its full-year forecast and will continue investing in areas expected to improve its service and support growth.

Netflix is scheduled to report quarterly financial results on Tuesday, Oct. 20, CNBC reported. The layoffs were announced shortly after Sarandos said at a Bloomberg conference that the company was “not growing as fast as I want.”

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Competition pressures streaming giant

Netflix remains one of the largest streaming services, but its viewing time has leveled off, said CNBC. The company has relied on a password-sharing crackdown and a lower-priced, ad-supported plan to support subscriber gains.

According to Fox Business, Netflix is also expanding beyond traditional subscriptions. Its investments include advertising, live programming, documentaries, sports, and video games. Those efforts aim to capture more of consumers’ time and create additional revenue.

The company faces competition from YouTube and other entertainment platforms. Paramount and Warner Bros. Discovery are also combining major streaming and studio assets, creating another large rival in the market.

Netflix last carried out substantial layoffs in 2022, after the company reported its first quarterly subscriber decline in more than a decade, Fox Business confirmed. The latest cuts show how the company is balancing continued investment with tighter control of costs.