Netflix (NASDAQ: NFLX) stock rose 0.16% to close at $70.57 on Wednesday as the streaming giant announced plans to cut approximately 1,000 jobs, or about 6% of its global workforce. The layoffs would be its largest since 2022.
The reductions will primarily affect Netflix’s product, technology, legal, and human resources departments. In an internal memo, co-CEOs Ted Sarandos and Greg Peters said the cuts were part of a broader reorganization to direct employees and resources toward areas they believe can most improve the service and support growth.
The executives said Netflix’s business remains strong and growing, and that the company is on track to meet its full-year financial forecast. Netflix’s full-year forecast remains unchanged at $51 billion to $51.4 billion in revenue and a 31.5% operating margin.
Slowing Revenue Growth Puts Netflix’s Cost Structure in Focus
The workforce reduction comes as Netflix’s revenue continues to increase, but at a slower pace.
Second-quarter revenue rose 13.4% year over year to $12.56 billion, down from 16.2% growth in the first quarter. Netflix has forecast third-quarter revenue of $12.86 billion, representing a further slowdown to 11.7% annual growth.
Despite slowing revenue growth, Netflix reported $3.4 billion in second-quarter net income and a 33.4% operating margin.
The cuts could reduce Netflix’s recurring payroll costs as the company continues investing in its streaming business. Netflix has not disclosed expected savings or restructuring charges from the layoffs.
Netflix’s decision also comes amid competition for audience attention from traditional streaming rivals and free platforms such as YouTube. Subscriptions remain its primary revenue source, while the company has been expanding advertising, live programming, and gaming to generate additional revenue.
Netflix expects advertising revenue to roughly double to $3 billion in 2026. That expansion remains part of its growth strategy as the company adjusts staffing across its operations.
Job Cuts More Than Double Netflix’s 2022 Reductions
The scale of the latest restructuring stands out against Netflix’s previous workforce reductions.
Netflix employed approximately 16,000 full-time workers at the end of 2025, according to its annual filing with the Securities and Exchange Commission. The planned reduction of roughly 1,000 positions is more than double the approximately 450 jobs Netflix eliminated in two rounds in 2022, when the company was responding to a rare decline in subscribers.
The latest cuts come under different financial circumstances, with Netflix continuing to report revenue growth and substantial profits.
Netflix also reported more than 97 billion viewing hours in the first half of 2026, up 2% from a year earlier. That was slightly faster than the 1.5% growth recorded for full-year 2025, although the company continues to face competition for viewers’ time.
Despite Wednesday’s 0.16% gain, Netflix shares were still down about 25% year to date.
The restructuring puts operating efficiency alongside revenue growth as Netflix approaches its third-quarter earnings release on October 20. The results will provide updated figures on revenue, profitability, and progress toward the company’s annual financial targets following the layoff announcement.
