The layoffs will affect around 6% of Netflix's workforce, with most reductions concentrated in product, technology, legal and human resources teams.
Netflix is laying off nearly 1,000 employees, representing approximately 6% of its workforce, as the streaming company reviews its operational priorities amid growing competition from digital entertainment and social media platforms.
The company confirmed the workforce reduction to TechCrunch, stating that most of the affected positions would be in its product, technology, legal and human resources departments. The announcement comes as Netflix continues investing in advertising, artificial intelligence and new entertainment formats to strengthen engagement across its platform.
According to the company's regulatory filings, Netflix employed approximately 16,000 full-time workers at the end of 2025. The latest reductions represent a significant restructuring of its workforce as the business adjusts its spending and investment priorities.
In an internal communication reported by The Wall Street Journal, Netflix co-CEOs Ted Sarandos and Greg Peters emphasised the importance of allocating resources to areas that support the company's long-term objectives.
The company said it would continue investing in high-impact areas to improve its services and remained on track to meet its full-year financial forecast. It has not disclosed a detailed timeline for implementing the layoffs.
The restructuring follows a period of increased competition for consumer attention across the entertainment industry. While Netflix remains a major subscription streaming platform, services including YouTube, TikTok and Instagram have expanded their share of audiences' daily viewing time.
This shift has placed traditional streaming services in competition with social media platforms that offer short-form videos, creator-led programming and other forms of digital entertainment.
Netflix has responded by broadening its content and product offerings beyond conventional films and television series. Its recent investments include live sports, gaming, children's programming, video podcasts and short-form video experiences.
The company has also been exploring AI-supported features and redesigning elements of its mobile application to improve content discovery and user engagement.
Advertising has become another area of focus as Netflix expands its ad-supported subscription offering. The company has introduced pricing changes and developed additional advertising opportunities as part of its efforts to diversify revenue.
In 2025, Netflix reported revenue of $45.2 billion, while its advertising revenue exceeded $1.5 billion, reflecting the growing contribution of advertising to its overall business.
The latest job cuts also follow Netflix's unsuccessful attempt to acquire Warner Bros. Discovery's streaming and studio businesses, which ultimately went to Paramount Skydance following a competitive bidding process earlier this year.
The proposed acquisition would have expanded Netflix's entertainment portfolio through access to additional studios, programming and other media assets.
Despite the workforce reduction, Netflix has indicated that it will maintain investment in selected growth areas. The restructuring comes as the company continues adapting its content, technology and advertising strategies to changing viewing habits and competition across digital platforms.
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