Netflix is making some major changes behind the scenes. The streaming giant plans to lay off approximately 6% of its workforce, impacting nearly 1,000 employees, as the company moves forward with broader “organizational changes.”
Co-CEOs Greg Peters and Ted Sarandos announced the cuts in a memo to employees Wednesday, noting that the company’s product, tech, legal and human resources teams would be among the hardest hit.
“Decisions like these are never easy, and we don’t take them lightly,” Peters and Sarandos wrote in the memo, which was obtained by The Associated Press.
Despite the layoffs, Netflix’s leadership maintained that business remains strong.
However, the executives emphasized the importance of being strategic about the company’s next steps, saying Netflix needed to be “disciplined about where we prioritize our people and resources” as it continues investing in future growth and “high impact areas to improve our service.” Netflix declined to comment further on Wednesday’s cuts beyond the memo from its chief executives.
The workforce shake-up comes as Netflix continues to see financial gains. Fueled by membership signups and price increases, the company reported $3.4 billion in profit and $12.56 billion in revenue during its second financial quarter. That marks increases of 9% and 13%, respectively, compared with the same period last year.
Still, there may be some challenges ahead. Netflix’s forecast for the third quarter came in below Wall Street’s expectations, with the company set to report its latest earnings next week.
And as the streaming wars continue to heat up, Netflix is facing an increasingly competitive field. The platform remains a dominant force, accounting for 19% of the market, according to the latest data from streaming guide JustWatch. However, competitors including Amazon’s Prime Video and Disney+ are continuing to vie for viewers’ attention.
The competition could get even tougher following a major shake-up in Hollywood. HBO Max and Paramount+ are now under the same corporate umbrella, Skydance, after Paramount’s $81 billion acquisition of Warner Bros. Discovery closed last week. The newly combined entertainment company plans to unify its streaming products “into a single service over time.”
Netflix had previously reached a deal late last year to acquire Warner’s studio and streaming business, but ultimately walked away from the offer in February.
According to regulatory filings, Netflix had approximately 16,000 full-time employees worldwide at the end of 2025. Wednesday’s announcement marks the company’s largest round of layoffs in years.