Netflix plans to cut about 1,000 employees worldwide, or roughly 6% of its workforce, in its biggest round of job cuts since 2022 as the streaming giant faces concerns about slowing viewer engagement.
In an internal memo obtained by Variety, co-CEOs Greg Peters and Ted Sarandos said the company would continue investing in areas with the greatest potential to improve its service and drive growth. They said Netflix remains on track to meet its full-year forecast but must make difficult choices about staffing and spending.
Netflix has introduced new features to keep subscribers watching, including live sports, special events, video podcasts and shows from YouTube creators. It has also explored live television channels and bundles with other streaming services.
Despite concerns about engagement, Netflix reported $45.2 billion in revenue in 2025, up 16% from the previous year, while net income rose 26% to nearly $11 billion, according to its annual report filed with the Securities and Exchange Commission. The company also surpassed 325 million paid memberships worldwide, according to its 2025 annual results.
The job cuts come days before Netflix is scheduled to release its third-quarter financial results on Oct. 20. The company previously forecast third-quarter revenue below Wall Street expectations, putting additional focus on its growth outlook and efforts to keep viewers engaged.
Netflix is also facing growing competition from Amazon Prime Video, Disney+, HBO Max and Paramount+. Disney and Amazon have also cut jobs in recent months as entertainment companies adjust their operations.
Netflix employed approximately 16,000 full-time workers worldwide at the end of 2025, according to its SEC filing. The company last carried out a major round of layoffs in 2022, when it cut about 450 jobs after reporting its first quarterly subscriber loss in more than a decade.