Netflix layoffs to cut about 6 per cent of workforce, nearly 1,000 roles in reorganisation

Netflix planned to cut about 6per cent of its workforce, or nearly 1,000 jobs. The streaming company said the move was part of broader organisational changes. Co-CEOs Greg Peters and Ted Sarandos shared the plan in a memo to staff on Wednesday. Netflix did not give more details beyond that message.

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The memo said several departments would feel the impact most. Netflix told employees that product, tech, legal and human resources teams were expected to be affected. "Decisions like these are never easy, and we dont take them lightly,\" Peters and Sarandos wrote. The memo was obtained by The Associated Press.

Netflix layoffs and the memo from Greg Peters and Ted Sarandos

In the message, Peters and Sarandos said Netflix’s business remained strong. They also said the company needed tighter focus on spending choices. \"but that Netflix needed to be disciplined about where we prioritise our people and resources as it invests in future growth and high impact areas to improve our service.\" Netflix declined further comment on Wednesday’s cuts.

The reductions followed a year of higher profits for Netflix. The company benefited from membership signups and price rises. In the second financial quarter, Netflix earned USD 3.4 billion in profit. Revenue reached USD 12.56 billion, rising 9 per cent and 13 per cent year-on-year.

Netflix layoffs as Netflix faces earnings pressure and forecasts

Even with those gains, Netflix gave a weaker outlook for the third quarter. The forecast came in below what Wall Street expected. Netflix planned to release its third-quarter earnings next week. The company did not link the layoffs directly to the forecast in public statements.

Netflix layoffs amid streaming competition and market share shifts

The streaming market has become more crowded, with pressure from several rivals. JustWatch data showed Netflix still led with 19 per cent market share. However, Amazon’s Prime Video and Disney+ followed closely. The competition has intensified as platforms look for scale and steady subscriber growth.

Industry consolidation also changed the landscape. HBO Max and Paramount+ moved under Skydance after Paramount’s USD 81 billion buyout of Warner Bros. Discovery closed last week. Skydance planned to combine its streaming products into one service over time. Netflix had earlier agreed to buy Warner’s studio and streaming business, then exited in February.

Regulatory filings showed Netflix ended 2025 with about 16,000 full-time employees worldwide. The cuts announced on Wednesday marked its largest layoff round in years. The Wall Street Journal first reported the layoffs before wider confirmation. Netflix has not said how quickly the job losses will take effect.

With inputs from PTI