Netflix is reportedly planning to cut around 5 per cent of its workforce in a restructuring that could be announced as early as next week, according to a report by Puck News. The proposed cuts could affect approximately 800 employees, based on the streaming company’s reported headcount of around 16,000 full-time staff at the end of 2025.
The company has not disclosed which departments would be affected. A Netflix spokesperson declined to comment on the reported plans, according to _Variety_.
The potential layoffs come as Netflix seeks to accelerate growth amid changing viewing patterns and increased investment in new forms of programming. Ted Sarandos, co-chief executive, Netflix, recently said the company wanted to grow faster, despite recording double-digit revenue gains across geographical regions in the second quarter of 2026.
Sarandos also highlighted challenges around user engagement. Netflix’s viewing engagement grew 2 per cent year on year in the first half of 2026. He noted that live programming accounted for around 5 per cent of the company’s content budget but generated approximately one per cent of its viewing, creating pressure on overall engagement figures.
Netflix’s second-quarter earnings were broadly in line with Wall Street expectations. However, its revenue guidance for the third quarter fell short of analyst forecasts, putting pressure on its share price.
The company last carried out major layoffs in 2022, when it eliminated around 450 positions following a decline in subscribers. It has also made smaller workforce reductions since then, including cuts affecting several dozen employees in its global product team earlier in 2026.
Netflix had around 16,000 full-time employees at the end of 2025, with approximately 68 per cent based in the US and Canada. A 5 per cent reduction would represent a significant workforce restructuring, although the final number of affected employees and the timing of any announcement remain unconfirmed.
Netflix is scheduled to report its third-quarter 2026 financial results on 20 October, 2026.
