Netflix Prepares Major Workforce Cuts Amid Stock Slump and Streaming Competition

Netflix is reportedly preparing to cut approximately 5% of its workforce—roughly 800 jobs—marking its first significant layoffs since 2022, according to multiple reports citing people familiar with the plans. The reductions, which could be announced as early as next week ahead of third-quarter earnings on October 20, are expected to primarily affect creative teams, including feature film staff. Puck News first reported the restructuring, with corroboration from Reuters, Variety, Deadline, the Los Angeles Times, and The Hollywood Reporter. Netflix had about 16,000 full-time employees at the end of 2025, with 68% based in the U.S. and Canada.

The move comes as Netflix shares trade near $70-71, down roughly 42% over the past year and 20-22% year-to-date. Analysts at HSBC and Wells Fargo recently downgraded the stock, citing weakening engagement trends and YouTube's growing dominance in U.S. TV viewing time (14.2% vs. Netflix's 7.8% per Nielsen). Co-CEO Ted Sarandos acknowledged at a Bloomberg conference that the company is "not growing as fast as I want us to." Despite double-digit revenue growth in regions, view hours rose only about 2% in the first half of 2026 even as content spending increased.

This restructuring reflects broader pressures in the streaming industry, including media consolidation (e.g., the recent Paramount-Warner Bros. Discovery merger) and Netflix's pivot into advertising, live programming, and gaming. The layoffs echo 2022 cuts tied to subscriber losses but occur in a more mature market where efficiency and cost alignment with slower growth are priorities. Connections to wider tech trends include ongoing corporate belt-tightening amid valuation resets, as seen in other media and tech firms navigating post-pandemic shifts and competitive fragmentation.