Netflix Lays Off 1,000 Employees Despite Claiming Business Is «Strong and Growing»

Netflix has announced plans to eliminate approximately 1,000 jobs worldwide, representing about 6% of its workforce, despite reporting billions of dollars in profits. The restructuring, announced October 14, 2026, marks the streaming giant’s largest round of layoffs since 2022 and comes as executives maintain that the company’s business remains financially strong and continues growing.

In an internal memo obtained by Reuters and Associated Press, Netflix co-CEOs Ted Sarandos and Greg Peters addressed the workforce reductions while emphasizing the company’s financial outlook. «Our business is strong and growing, and we remain on track to deliver our full-year forecast,» the executives wrote, despite announcing substantial job losses across multiple departments.

The layoffs will primarily affect employees working in technology, product development, legal services and human resources. Netflix executives described the restructuring as an effort to reorganize operations and concentrate investments in areas expected to generate long-term returns. The company has not provided a complete breakdown of affected positions by department or geographic location.

Sarandos and Peters acknowledged the consequences of the cuts in their internal communication. «Decisions like these are never easy, and we don’t take them lightly,» they wrote. The executives also emphasized that fulfilling Netflix’s entertainment ambitions required disciplined decisions about allocating employees and resources, presenting the reductions as part of a broader strategic reorganization.

The announcement follows another profitable period for Netflix, which reported approximately $12.56 billion in second-quarter 2026 revenue, representing 13% annual growth. Quarterly net income reached roughly $3.4 billion, an increase of approximately 9%. The financial results demonstrate that the layoffs are occurring amid continued profitability rather than company-wide financial losses.

Despite its financial success, Netflix faces growing competition for viewers’ attention. YouTube, TikTok, Disney+ and Amazon Prime Video continue competing for entertainment audiences. According to Nielsen figures cited by Business Insider, Netflix’s share of U.S. television viewing declined from approximately 9% in December 2025 to 7.8% in July 2026.

Netflix has increasingly relied on subscription price increases and advertising to expand revenue while navigating a more competitive streaming market. The company continues investing in its advertising-supported tier, live sports, video podcasts and AI-supported features. These initiatives are intended to increase engagement and develop additional income beyond traditional subscription fees.

The restructuring follows Netflix’s unsuccessful attempt to acquire Warner Bros. Discovery’s streaming and studio businesses. Paramount Skydance ultimately prevailed in the bidding contest, completing an approximately $110 billion acquisition in October. The outcome left Netflix pursuing growth through its existing streaming operations, advertising business and investments in new entertainment formats.

Netflix has committed substantial resources to developing businesses beyond traditional streaming subscriptions, including gaming, live programming and advertising. The company reported approximately $45.2 billion in revenue during 2025, with advertising contributing more than $1.5 billion. However, management faces growing pressure to demonstrate that these investments can generate sustained returns.

The latest layoffs represent Netflix’s largest cuts since 2022, when approximately 450 employees lost their jobs following the company’s first subscriber decline in more than a decade. Unlike that earlier restructuring, the latest reductions come during a period of considerable profitability, highlighting the company’s changing approach to staffing and resource allocation.

Netflix’s decision to eliminate approximately 6% of its workforce comes ahead of its October 20 third-quarter earnings report. Investors will be watching for updates on profitability, engagement and future investments. Meanwhile, nearly 1,000 employees face job losses as the company moves forward with its restructuring while maintaining that its business remains «strong and growing.»