Netflix Axes 6% of Workforce in Biggest Layoff Round in Years

Netflix plans to lay off nearly 1,000 employees, or about 6 per cent of its workforce, in its biggest round of job cuts in years, despite rising profits and revenue, as competition in the global streaming industry intensifies.

Co-chief executives Greg Peters and Ted Sarandos announced the cuts in a memo to employees on Wednesday, citing broader organisational changes. The company's product, technology, legal and human resources teams are expected to be among the most affected.

The executives said the decisions were difficult but necessary to ensure the company prioritises its workforce and resources in areas offering the greatest potential for future growth and service improvements. They maintained that Netflix's business remained strong.

The layoffs come even as the streaming giant reports healthy financial results. Netflix earned $3.4 billion in net profit and generated $12.56 billion in revenue in the second quarter, increases of 9 per cent and 13 per cent, respectively, from the same period last year. Membership growth and price increases helped drive the gains.

However, its third-quarter forecast fell short of Wall Street expectations. The company is scheduled to announce its latest quarterly results next week.

Competition is intensifying, with Amazon Prime Video and Disney+ challenging Netflix's dominance. Netflix accounts for 19 per cent of the streaming market, according to JustWatch data.

The competitive landscape could shift further following Skydance's $81-billion acquisition of Warner Bros. Discovery, bringing HBO Max and Paramount+ under the same corporate umbrella. The company plans to combine the streaming platforms into a single service over time.

Netflix had pursued a deal for Warner's studio and streaming business last year but withdrew its offer in February.

Regulatory filings show Netflix employed around 16,000 full-time workers worldwide at the end of 2025. The latest cuts underscore the pressure on streaming companies to control costs while pursuing growth in an increasingly crowded market.