Netflix plans substantial layoffs, sources say
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Netflix plans a substantial round of layoffs as the streaming giant faces rising competition and pressure to retain its subscribers, according to people familiar with the job cuts.
The cuts are expected to affect 5% of the company‘s workforce, which could be 800 employees, according to one of the sources who was not authorized to comment. The job losses will affect the creative team including those working on features, the source said.
Netflix declined to comment. The planned cuts are believed to be the biggest at the Los Gatos company since 2022. The news was first reported by news outlet Puck.
Netflix scripted chief Jinny Howe must replace ending franchises like “Stranger Things” and “Outer Banks.” Inside her bets on “The Roman,” “The Body” and first-time showrunners.
Netflix has been under scrutiny from investors over how much time its subscribers spend on the streaming service. View hours rose only about 2% in the first half of 2026 compared with a year earlier, even as content spending climbed.
“Overall we’re not growing as fast as I want us to, and we’re working on making that move faster,” said Netflix co-Chief Executive Ted Sarandos at the Bloomberg Screentime event last week.
Netflix has noted how engagement can be measured in different ways. For example, its investment in live programming helps spur significant subscription sign-ups, even though it represents a small percentage of watch time on the streaming service, the company has said.
Some investors are concerned about Netflix’s future growth, causing the company’s stock price to tumble 21% year to date.
But some investors remain skeptical about the company’s future growth. Rival YouTube remains the leader in streaming viewing hours in the U.S. on TVs, representing 14.2% versus Netflix’s 7.8% in July, according to Nielsen. Netflix stock has also declined 43% compared to a year ago. On Friday, the stock closed at $70.30, down about 2%.
Netflix last conducted major layoffs in 2022 after the streamer reported subscriber losses for the first time in more than a decade. In May that year, the company laid off 150 workers and dozens of contractors and part-time workers in areas including its social media teams. The following month, it laid off 300 people or roughly 3% of its staff.
Recently, Netflix made changes to its games division. In August, the company closed its Hollywood-based gaming studio Night School and said it was in the process of closing its Helsinki-based gaming studio Moonloot.
