Netflix has announced the layoff of approximately 1,000 employees, which accounts for about 6% of its total workforce. This marks the company's most significant reduction in staff since 2022. The affected positions are primarily located within the product, technology, legal, and human resources departments.
The decision comes as the company faces a decline in stock value, which has dropped by roughly 41% over the past year. Co-CEOs Greg Peters and Ted Sarandos stated that the move is necessary to maintain discipline in resource allocation. The layoffs were announced just six days before the scheduled quarterly earnings report on October 20.
Despite the layoffs, Netflix remains profitable. The company projects 2026 revenue to reach between $51 billion and $51.4 billion, with an operating profit margin of 31.5 cents per dollar. However, growth in user engagement has slowed, with viewing hours increasing by only 2% in the first half of 2026 compared to the previous year.
Market data indicates that YouTube captured 14.2% of US television viewing time in July, while Netflix accounted for 7.8%. For the third quarter of 2026, the company has provided guidance of $12.86 billion in revenue and earnings of $0.82 per share. Shares were trading at approximately $71 as of Wednesday.
