Netflix May Cut 850 Jobs Amid Slowing Growth
In Short
Netflix may cut around 850 jobs as slowing viewer engagement, rising operating costs and a falling share price put pressure on the streaming giant.
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Netflix is saying that it is getting ready to let go of 5 per cent of its employees.
Netflix is saying that it is getting ready to let go of 5 per cent of its employees. The big streaming company wants to keep costs under control. This is happening because growth is not as fast as before. Investors are worried too. A report from Puck News says that the company might tell everyone about the job cuts soon, as next week. This would be the time that Netflix has cut jobs since 2022.
With Netflix set to release its third-quarter earnings on October 20 the possible restructuring comes at a moment for the company. Puck estimates that Netflix has 17,000 employees worldwide which could mean around 850 people might be affected. But the company’s annual report showed 16,000 full-time employees at the end of 2025 so the actual number might be closer, to 800. It's still not clear which departments will be impacted.
Netflix Faces Its Biggest Layoffs Since 2022
Netflix last carried out major job cuts in 2022, when it lost 200,000 subscribers in a single quarter for the first time in more than a decade. The company subsequently laid off around 150 employees in May and another 300 in June. Smaller reductions have continued since then, including cuts affecting several dozen employees in its global product team earlier this year.
The company is also feeling pressure from the stock market and the company’s shares have dropped than 40 percent in the last year. Puck said that the company’s challenges stem partly from Netflix’s failed bid for Warner Bros year and from a slowdown in viewer engagement, which only increased by two percent in the first half of 2026.
The wider entertainment industry is dealing with challenges as Disney has announced job cuts, on three separate occasions this year.
Netflix co-CEO Ted Sarandos acknowledged the company's growth concerns at a Bloomberg event last month. "Overall, we're not growing as fast as I want us to," he said.
He also pointed to the cost of live programming, which accounts for about 5 per cent of Netflix's content budget but generates roughly 1 per cent of total viewing.
Rising Costs Add to Netflix’s Challenges
Although the market slowed Netflix still shows revenue growth. Netflix’s revenue went up 13 percent to $12.6 billion during the April-June quarter. Still Netflix spent more on marketing, technology and administration with those costs rising 18 percent to, about $2.3 billion.
Technology and development costs climbed 22 per cent, largely due to a $142 million increase in personnel expenses. Netflix also added around 2,000 full-time employees during 2025.
Revenue growth has slowed down over time. It dropped from 18 per cent in the quarter of 2025 to 16 per cent in the next quarter and then to 13 per cent after that. The company now expects growth of 12 per cent for the September quarter. With this slowdown the company is still focused on hitting a 31.5 per cent operating margin in 2026. That’s higher, than the 29.5 per cent operating margin it achieved year.
The reported layoffs would help reduce overheads without directly cutting content spending, Netflix's biggest expense. Investors will now look for clarity on how advertising, live events and gaming can support future growth when the company announces its quarterly results on October 20.
