Netflix announces biggest layoffs since 2022, cuts 1,000 jobs across product and technology teams

Streaming giant Netflix is laying off approximately 1,000 employees, representing nearly 6 per cent of its global workforce, in its largest round of job cuts since 2022, as the company grapples with slowing growth, intensifying competition and mounting pressure from investors.

The layoffs primarily affect employees across the product, technology, legal and human resources departments, according to a report by The Wall Street Journal.

Netflix co-chief executives Ted Sarandos and Greg Peters informed employees about the decision through an internal email on Wednesday, outlining the need to prioritise resources and focus investments on areas expected to deliver stronger growth.

The restructuring comes at a critical juncture for the streaming platform, which has been seeking to diversify its business beyond traditional subscriptions while competing with an expanding range of digital entertainment services.

Netflix employed approximately 16,000 full-time workers at the end of 2025, making the latest reductions one of its most substantial workforce restructuring exercises in recent years.

Slowing growth prompts restructuring

The job cuts follow growing concerns over Netflix's ability to sustain its growth trajectory amid changing consumer viewing habits and increasing competition from rival streaming services. Speaking at a Bloomberg event in September, Sarandos acknowledged that the company's expansion was not progressing at the desired pace. "We're not growing as fast as I want us to, and we're working on making that move faster," he said.

Netflix shares have declined more than 30 per cent over the past six months and over 40 per cent during the past year, reflecting investor concerns about slowing growth and the company's long-term prospects. The company has been investing heavily in advertising, live programming, sports and gaming to diversify revenue streams and reduce its dependence on subscription income.

However, these initiatives have yet to deliver the acceleration in audience engagement that management has been seeking.

Viewer engagement raises concerns

Netflix reported approximately 97 billion viewing hours during the first half of 2026, marking an increase of just 2 per cent compared with the corresponding period last year. Although the figure remains substantial, the modest growth has raised questions about the company's ability to attract and retain viewers in an increasingly competitive entertainment market.

According to Nielsen data, Netflix accounted for 7.8 per cent of television viewing in the United States in July, compared with 9 per cent in December. YouTube, meanwhile, commanded a 14.2 per cent share of US television viewing in July, underscoring the growing competition between traditional subscription platforms and free digital video services. Netflix has also announced plans to reduce the frequency of its detailed engagement reports, moving from twice-yearly disclosures to annual reporting beginning in 2027.

The decision has attracted investor scrutiny because viewing figures provide an important indication of audience engagement and subscriber retention.

Subscription prices rise amid competition

The layoffs come months after Netflix increased subscription prices in the United States as part of efforts to strengthen revenue growth. In March, the company raised the monthly price of its standard advertisement-free subscription from $17.99 to $19.99, while its advertisement-supported plan increased from $7.99 to $8.99.

The price increases came as Netflix sought to improve profitability while continuing to invest in original programming, live events and new entertainment formats. The company has also been experimenting with video podcasts, creator-led programming and additional live content to broaden its appeal.

Biggest job cuts since 2022

The latest layoffs represent Netflix's largest workforce reduction since 2022, when the company eliminated hundreds of positions after reporting its first subscriber decline in more than a decade.

The current restructuring comes ahead of Netflix's third-quarter earnings announcement scheduled for October 20, when investors are expected to closely examine its revenue growth, profitability and outlook. The company also faces a changing competitive landscape following Paramount Skydance's acquisition of Warner Bros Discovery's streaming and studio assets.

With competition intensifying across streaming, advertising and digital entertainment, Netflix's latest workforce reductions signal a renewed emphasis on controlling operating costs while directing investment towards businesses considered central to its future expansion.