Netflix plans to cut about 5% of its workforce, roughly 800 jobs, report says
According to Puck News, citing anonymous sources, Netflix is preparing a restructuring that would affect about 5% of staff, with an announcement possibly as early as next week. Netflix declined to comment, and the reporting does not say which departments would be hit. Variety and TheWrap put the figure at roughly 800 jobs against about 16,000 full-time employees at the end of 2025, while AV Club estimates 17,000 employees worldwide and about 850 jobs.
Bottom line — If confirmed, the cuts would be Netflix's largest since 2022, as the stock sits about 40% lower than a year ago.
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Netflix co-CEO Ted Sarandos told a Bloomberg conference that the company is "not growing as fast as I want us to," while Variety notes that Netflix still posted double-digit revenue gains in every region in the second quarter.
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Variety reports that live programming takes about 5% of Netflix's content budget but accounts for about 1% of viewing, according to Sarandos.
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TheWrap says HSBC and Wells Fargo downgraded the stock last month over engagement trends and competition from YouTube, which had 14.2% of TV viewing in July against Netflix's 7.8%, according to Nielsen.
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theTIKR reports Netflix's operating margin reached 29.5% in 2025 and that full-time headcount rose about 25% from 2022 to 2025, according to its own calculations from company data, so the cuts would reverse several years of expansion.
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TheWrap notes Netflix's bid for Warner Bros. Discovery, around $83 billion (€76 billion), collapsed after it declined to match Paramount Skydance's offer of $110 billion (€101 billion), and Paramount has now closed that deal.
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AV Club cites The Hollywood Reporter saying a reorganisation "may be undertaken in the next few months," a timing that differs from Puck's report of an announcement as early as next week.
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Netflix is scheduled to report third-quarter 2026 earnings on 20 October, the next point at which the reported cuts and the margin outlook could be addressed.