Netflix to Lay Off Nearly 1,000 Employees Despite Global Expansion. Its Stock is Falling.
Netflix is laying off approximately 1,000 employees, or 6% of its global workforce, in its largest round of job cuts since 2022 even as the streaming giant continues investing billions of dollars in original programming, international productions and new entertainment ventures.
The layoffs, announced Wednesday, will primarily affect the company’s product, technology, legal and human resources departments, according to an internal memo obtained by CNBC.
The reductions come just days before Netflix is scheduled to report quarterly earnings and amid increasing competition for viewers from traditional entertainment companies, YouTube and other digital platforms. The company’s stock was falling on Wednesday, dropping 1.36% at noon ET.
Netflix co-CEOs Ted Sarandos and Greg Peters told employees that the decision reflects a need to concentrate resources on the company’s priorities rather than a deterioration in its financial outlook.
“Our mission – to entertain the world – is ambitious, and delivering on it requires us to be disciplined about where we prioritize our people and resources,” the executives wrote. They emphasized that Netflix remains financially strong and expects to meet its annual projections.
“Our business is strong and growing, and we remain on track to deliver our full year forecast. We’ll continue to invest aggressively in high impact areas to improve our service and further drive growth and innovation,” the memo stated.
The restructuring affects a company that employed approximately 16,000 people at the end of 2025. It represents Netflix’s largest workforce reduction since 2022, when the company eliminated roughly 450 positions following an unusual decline in subscribers.
Unlike the earlier cuts, Wednesday’s announcement comes as Netflix continues expanding its international entertainment operations, particularly in Latin America and Spain. In February 2025, Sarandos announced plans to invest $1 billion in Mexican film and television production over four years.
Spain has also become a major production center for Netflix. In June 2025, the company committed more than €1 billion to Spanish productions through 2028, reinforcing its investment in an industry responsible for international successes including Money Heist, Elite and Society of the Snow.
There is currently no indication that Wednesday’s layoffs will affect these investment commitments or result in the cancellation of Spanish-language productions. The company has not announced reductions specifically targeting its creative divisions.
Nevertheless, the restructuring comes as Netflix faces questions about its ability to sustain growth in an increasingly competitive entertainment market. Speaking at the Bloomberg Screentime conference earlier this month, Sarandos acknowledged that Netflix was “not growing as fast as I want.”
The company is also navigating a changing media landscape following its unsuccessful attempt to acquire Warner Bros. Discovery’s streaming and studio assets, which ultimately went to Paramount Skydance.
Meanwhile, Netflix has been developing additional revenue opportunities through advertising, live programming and gaming, although those businesses have yet to match the financial contribution of its subscription operations.
Netflix is scheduled to release its quarterly earnings on October 20. Investors will be looking for additional details about the layoffs, spending priorities, and expectations for future growth.
