Netflix reportedly planning layoffs affecting 5% of workforce

LOS ANGELES (KESQ) - Netflix is preparing to cut about 5% of its workforce in a restructuring that could eliminate hundreds of jobs, according to a report published today.  

The entertainment industry news outlet Puck reported Friday that the layoffs could be announced as early as next week, citing sources familiar with the company's plans.

Netflix did not immediately respond to a request for comment Friday. It was unclear which divisions or locations would be most heavily affected by the potential reductions.  

The streaming company reported having approximately 16,000 full-time employees worldwide at the end of 2025, meaning a 5% workforce reduction would affect roughly 800 people.

About 10,900 of those employees, or 68%, were based in the United States and Canada, according to the company's annual report.  

The potential job cuts come as Netflix faces increasing competition for viewers while expanding its business beyond traditional subscription streaming into live programming, video games and advertising-supported services.

Netflix previously eliminated about 450 positions in 2022 after reporting its first quarterly subscriber decline in more than a decade. The company has also made smaller workforce reductions since then.

Despite the reported plans for additional layoffs, Netflix has continued to report revenue growth. The company posted a 13% year-over-year increase in revenue during the second quarter of 2026, although its third-quarter revenue forecast fell short of Wall Street expectations.

Co-CEO Ted Sarandos acknowledged concerns about the pace of the company's growth during a Bloomberg Screentime conference in Los Angeles last month, saying Netflix was working to accelerate its expansion, according to Variety.

The company has increasingly invested in live events and other programming as it seeks to attract viewers and broaden its revenue sources.   

Netflix is scheduled to release its third-quarter financial results Oct. 20, when company executives are expected to discuss its performance and outlook with analysts.