Posted on 10/14/2026 8:30:40 AM PDT by Red Badger
The cuts represent about 6 percent of the streamer's workforce as it seeks a reset in its business.
Netflix staff were informed that the company will undergo significant layoffs Wednesday, a source confirms to The Hollywood Reporter, as the streaming giant seeks a reset amid efforts to keep its global business growing.
The company is expected to cut about 6 percent of its workforce, or about 1,000 people, making it the largest staff reduction at the company since 2022.
Netflix co-CEOs Ted Sarandos and Greg Peters announced the cuts in a memo to staff Wednesday morning. The company’s product, tech, legal and HR teams are said to have been particularly impacted.
“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 co-CEOs wrote in the memo, which was obtained by THR. “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. Doing that means making focused choices across the business so we can keep delivering for our members, partners, employees, and investors.”
Ted Sarandos lamented at the Bloomberg Screentime summit on Sept. 30 that “overall, we’re not growing as fast as I want us to, and we’re working on making that move faster.”
While the company continues to post robust profits, and remains the biggest player in subscription streaming, its viewing time has stagnated in recent months. With advertising one of the company’s growth areas, it needs to keep boosting that viewership engagement.
Netflix has mostly avoided large-scale layoffs in recent years (the last major round of cuts was 2022), though the company has made adjustments on specific teams over time.
The streaming giant is set to report its Q3 earnings next week, and the company is expected to share more information at that time.
You can read the memo from Sarandos and Peters below.
Team – We wanted to share that we are making a number of organizational changes and, as a result, we’ll be letting go of roughly 6% of our colleagues, with the greatest impact to our product, tech, legal, and HR teams.
Decisions like these are never easy, and we don’t take them lightly. Our top priority today is to support those who are leaving Netflix. The process will vary somewhat by country, but leaders will be connecting with impacted employees soon. If you are leaving, please know that we will support you throughout this transition and make sure you have as much clarity and context as possible. We also want to say thank you. What you’ve built, and the care you brought to Netflix, have made a lasting difference and we will always be grateful.
For the rest of the team, we know you have questions, too. 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. 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. Doing that means making focused choices across the business so we can keep delivering for our members, partners, employees, and investors.
We know changes like this are tough, but let’s stay focused. This is one of the most dynamic times in the history of entertainment – and it’s a moment perfectly suited to a company like ours that’s built at the intersection of technology and entertainment. Now it’s on us to step up and meet the moment, together, like we always do.
Ted and Greg
More to come.
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Berries and moochelle? 😊
Lear to code.
They did a love story movie about the Barack and Michelle. Let me know when they do one about Donald and Melania. I’ll renew my Netflix membership.
ISWYDT....................
Weary of all streaming services that change monthly fees while including advertising in their programming. The NFL is the worst at this.
😃
Netflix gradually shifted from DVDs to streaming and eventually ended its DVD service, eliminating access to many classic movies. As its catalog became dominated by content I considered garbage, I canceled my subscription more than five years ago.
I've thought about subscribing to NF, but its association with Odumbo has always stopped me. I suspect I'm not the only one it has stopped.
“Weary of all streaming services that change monthly fees while including advertising in their programming.”
Yes, that is annoying. I think Amazon Prime does that too.
I’m mostly watching Fandango, without advertisements, and Tubi, free with advertisements. I watch college football games on a delayed basis on YouTube. I choose the entire game when I can, recaps when necessary.
I’ve been watching Gunsmoke, Twilight Zone, and a few other classics they brought back recently. Last night, I watched the episode with Russell Johnson (The Professor) get caught in a time warp and tries to prevent Lincoln’s assassination (the episode also features Mr. Drysdale without his toupee). I also watched the one featuring the World War 1 pilot who accidentally ended up in modern times (1959).
It’s like you’re being thrown curves every step of the way. Think all those sideline interviews at football games. Waste of time. Netflicks movies are modern day trash. I watch TCM on my youtube tv.
Netflix originated as a pure distributor of movies leased from traditional studios. First it ran Blockbuster and other bricks and mortar outlets out of business. Then it took its mail system online and became the first mover in streaming. It’s big because of first mover advantage.
As Big Tech took over most of the legacy studios and went into the streaming business themselves, they started pulling their own content back behind firewalls.
Within a few years, Netflix was finding it increasingly expensive to lease the top new movies from others. That’s when Netflix’s offerings started spiraling downwards qualitatively. It still got good movies here and there. It could sometimes pick up a good independent film out of festivals. But Netflix realized that if it was going to compete in a world in which the real movie studios had their own streaming platforms, it was going to have to step up and start producing its own stuff. And it quickly earned a reputation for repetitive sludge because it was run by subscription pushers, not movie people. That’s why Netflix was so eager to buy WBD.
Netflix in its current form is a content mill that somehow accidentally manages to make a good movie. But in the long run, it’s probably going to lose out to bigger fish that have deep production expertise.
Jeff Bezos has become a lightning rod for many reasons, but he started out as an online bookseller. He was a hero to a lot of people then, although he did run many thousands of brick and mortar bookstores out of business. He branched out and now provides convenience shopping for just about anything under the sun. The core of Amazon is a logistics business. But when Amazon got into streaming, it bought MGM, and that’s at the heart of Amazon originals. Netflix needs something similar if it’s going to stay competitive.
Personally, I’d like for all the streamers to die and to revert to the old system, which depended on attracting customers and putting butts in seats.
Obama fixed Netflix just like he fixed health industry.
I did the same for the same reasons. The service of mailing DVDs to us Rural Folk was awesome! I sure wish someone else had picked up that idea...and not ALL of us have access to great Libraries, or are even able to ‘stream’ stuff.
But then, I also liked going to ‘Blockbuster’ to pick out movies for the weekend with my kids. ;)
Their H-1b quota must have come through.
I enjoyed the same thing with my kids at Blockbuster back in the 1990s and early 2000s. Lots of happy memories!
We use Fandango too. It’s fantastic and getting better by consistently adding more movies and old TV shows to their catalog.
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