Netflix Cuts About 1,000 Jobs in Biggest Layoff Since 2022

Netflix is cutting about 6% of its workforce, or roughly 1,000 jobs, in its biggest round of layoffs since 2022, as the streaming company faces growing competition from YouTube and other platforms, according to an internal memo reviewed by Reuters.

The Netflix layoffs primarily affect employees in product, technology, legal and human resources, according to a Wednesday email from co-CEOs Greg Peters and Ted Sarandos. The move comes as investors question whether Netflix can sustain its growth and attract viewers amid competition from free, user-generated content and pressure to diversify revenue beyond subscriptions.

Netflix targets four major departments in job cuts

The Netflix layoffs mark the company’s largest workforce reduction since 2022, when Netflix eliminated about 450 positions in two rounds after losing subscribers for the first time in more than a decade.

In the latest memo, Peters and Sarandos said the company must allocate its resources carefully while continuing to pursue its global entertainment ambitions.

“Our mission — to entertain the world — is ambitious, and delivering on it requires us to be disciplined about where we prioritize our people and resources,” the executives wrote.

They added that the business remained strong and growing and that Netflix was on track to meet its full-year financial forecast.

Netflix employed about 16,000 people at the end of 2025. The latest reductions represent a significant shift in staffing as the company reassesses its priorities in an increasingly competitive streaming market.

YouTube and TikTok challenge Netflix for viewers

Netflix faces growing pressure from platforms such as YouTube and TikTok, which attract audiences with free, user-generated videos. These services also benefit from lower content costs in many cases, creating a challenge for subscription-based streaming platforms seeking to keep viewers engaged.

The amount of time users spend watching Netflix, known as engagement, has become a key concern for investors. Sustaining viewing time is important as the company competes for audience attention across a crowded digital entertainment market.

Netflix shares have fallen about 25% so far this year, according to Reuters. However, the stock rose 0.7% on Wednesday following news of the Netflix layoffs.

The company also faces questions about its long-term strategy after an unsuccessful pursuit of Warner Bros. Discovery’s streaming and studio assets earlier this year. Paramount completed its $110 billion acquisition of Warner Bros. earlier in October, creating a larger media group under Skydance.

Netflix seeks new revenue beyond subscriptions

Netflix has been working to diversify its business through advertising, live programming and gaming as it seeks additional sources of growth.

Ross Benes, a senior analyst at eMarketer, said Netflix has struggled to establish another major revenue source beyond subscriptions.

“They haven’t been able to find like another line of major revenue,” Benes said, adding that the company remains dependent on subscriptions that could be approaching a growth ceiling.

He said developing additional revenue streams would become increasingly important as Netflix looks to reduce its reliance on its core subscription business.

The advertising-supported plan gives Netflix another way to generate income, while live programming and gaming could help attract audiences and increase engagement. However, these efforts face competition from established digital platforms and other entertainment companies.

Netflix’s latest job cuts come as the streaming industry undergoes broader changes in audience behavior, content distribution and competition for advertising revenue. The company says it remains on track to meet its full-year forecast, but investors continue to assess whether its expansion efforts can support sustained growth.