Netflix is cutting about 6% of its workforce, or close to 1,000 jobs, while saying it remains on track to meet its full-year forecast. The company confirmed the layoffs to TechCrunch and said most would affect its product, technology, legal, and human resources departments.
The company said it was shifting resources and would “continue to invest aggressively in high impact areas” to improve its service. Its annual regulatory filing listed 16,000 full-time employees at the end of last year.
The Wall Street Journal first reported the cuts, citing an internal memo to employees. According to the Journal, co-CEOs Ted Sarandos and Greg Peters wrote that the mission “to entertain the world” is ambitious and requires discipline in deciding where to prioritize people and resources.
The layoffs come alongside a broader effort to earn more from subscribers and give them more reasons to keep watching. Netflix has raised prices and expanded its ad-supported tier, while investing in live events, sports, gaming, and children’s programming to increase engagement.
Competition for viewers’ attention goes well beyond other streaming services. Long the dominant TV app, Netflix faces growing competition from YouTube, TikTok, Instagram, and other social apps. Reports from market research firms suggest TikTok is catching up with Netflix on user engagement, while YouTube reportedly surpassed Netflix in average daily viewing in 2025.
Netflix has also introduced AI-supported features and video podcasts, experimented with short-form video, and redesigned its mobile app as it competes with social platforms for users’ time. These efforts take the service beyond its core films and television series, even as it cuts staff from the teams responsible for product and technology.
The cuts also follow a prolonged bidding war for Warner Bros Discovery’s streaming and studio businesses, which Netflix lost to Paramount Skydance earlier this year. Netflix apparently saw substantial potential in Warner Bros’ assets, which include its studios, HBO, streaming platforms, games, and television networks such as CNN and HGTV.
Netflix reported $45.2 billion in revenue in 2025 and said advertising revenue had risen to more than $1.5 billion. The layoffs reflect a shift in where the company intends to put its people and spending, with investment in selected areas continuing despite the staff reductions.
