Netflix cutting workforce as its revenue growth slows
The layoffs will affect the company's product, tech, legal and HR teams, Netflix leaders said in a memo to employees.
Key points
- Netflix is laying off roughly 6% of its workforce, affecting about 1,000 positions globally.
- The cuts hit the product, technology, legal and human resources departments, according to a memo to employees.
- Netflix shares have fallen nearly 43% over the last 12 months and the company reports earnings on Oct. 20.
Netflix is cutting roughly 6% of its workforce, according to a memo to employees obtained by CBS News. The layoffs will affect the company's product, technology, legal and human resources departments, co-CEOs Ted Sarandos and Greg Peters wrote in the memo.
The Wall Street Journal first reported the news and said the cuts will impact about 1,000 positions globally, marking Netflix's largest workforce reduction since 2022. Netflix had roughly 16,000 full-time employees as of December 2025, according to a securities filing. The company declined further comment on the planned layoffs.
What the co-CEOs said
In the memo, Sarandos and Peters said the business remains strong and growing and that Netflix is still on track to meet its full-year forecast. They said the company will keep investing aggressively in high-impact areas to improve its service and drive growth and innovation.
They added that doing so requires making focused choices across the business so Netflix can keep delivering for its members, partners, employees and investors.
Our business is strong and growing, and we remain on track to deliver our full-year forecast
— Netflix co-CEOs Ted Sarandos and Greg Peters
Slowing growth and competition
Netflix remains highly profitable, but its growth has slowed in recent years amid mounting competition from other streaming platforms and a saturated North American market. The company booked revenue of about $45 billion in 2025, according to S&P Capital IQ, up 16% from the prior year but slower than its annual revenue growth before the pandemic.
Netflix is still seeking to spur audience growth. S&P Global estimates it had 327.7 million subscribers at the end of last year, up 8.6% from a year earlier. Netflix shares traded at just below $70 each on Wednesday and have fallen nearly 43% over the last 12 months. The company is scheduled to release its next earnings report on Oct. 20.
