Netflix to slash 1,000 jobs as it struggles to keep viewers watching

By the Editorial Team · Friday, October 16, 2026

Netflix announced it will lay off about 1,000 employees, or 6 percent of its global workforce, mainly impacting product development, technology, legal, and HR teams. The cuts come as the company faces slower subscriber growth and increased competition, prompting a shift toward new content strategies like live sports and partnerships to boost engagement and spur future expansion.

Netflix Inc. announced plans to cut approximately 1,000 jobs, representing about 6 percent of its global workforce, as the streaming service continues to face challenges stemming from slowing subscriber growth. The job reductions will primarily affect teams in product development, technology, legal, and human resources, according to an internal memo sent by co-Chief Executive Officers Greg Peters and Ted Sarandos on Wednesday.

The executives emphasized that the decision was difficult and not taken lightly but stressed that the company’s core business remains strong and on track to meet its full-year financial forecast. Netflix’s stock, which has declined roughly 25 percent so far this year—underperforming the broader S&P 500 index by a wide margin—fell less than 1 percent in early trading following the announcement.

Earlier this year, Netflix’s attempted acquisition of Warner Bros. Discovery Inc. was unsuccessful. The bid, seen by investors as a strategy to acquire a portfolio of well-known characters and content, raised concerns about the streaming service’s underlying growth prospects. Analysts have pointed to Netflix’s recent lack of major new hit content as a factor hampering its ability to retain and engage subscribers.

Recent data showed only a 2 percent increase in viewing engagement during the latest reporting period, marking a slowdown in user activity. The company also garnered its lowest number of Emmy Awards in a decade, underscoring challenges in producing critically acclaimed programming.

To counter declining engagement, Netflix has sought to diversify its offerings by expanding into live sports, events, video podcasts, and content from prominent YouTube creators. These moves are aimed at increasing screen time and appealing to a broader audience, while also intensifying competition with other digital platforms such as YouTube.

At a recent industry conference, Sarandos acknowledged Netflix’s slower-than-desired growth and indicated the company is working to accelerate innovation and expansion. The memo from Peters and Sarandos reiterated a commitment to investing strategically in areas with high potential impact to enhance the service and drive future growth, even as cost-cutting measures are implemented.

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