Netflix is eliminating roughly 1,000 jobs, about 6% of its workforce, in its deepest round of cuts since 2022.
The big picture: Netflix is still the largest streaming service in the world, and the cuts arrive as engagement growth slows. Users watched more than 97 billion hours in the first half of 2026, a 2% increase from a year earlier.
What they're saying: "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," co-chief executives Greg Peters and Ted Sarandos wrote to staff.
- "Overall, we're not growing as fast as I want us to, and we're working on making that move faster," Sarandos said at Bloomberg's annual media conference late last month.
Zoom in: The majority of the cuts hit product, technology, legal and human resources teams. Netflix reports third-quarter results on Tuesday.
- The company said it will continue to invest aggressively in high impact areas while making focused choices across the business, per the email to staff.
Between the lines: Netflix has been buying engagement rather than waiting for it, adding live sports and video podcasts licensed from outside companies including Bill Simmons' The Ringer.
What's next: The pressure is industry wide. Disney has cut hundreds of jobs this year under new chief executive Josh D'Amaro, and Skydance is widely expected to shrink headcount across Paramount and Warner Bros Discovery.
Why it matters: Netflix sets the cost discipline bar for the rest of Hollywood, and a 6% cut at the healthiest company in streaming tells every rival what the next year looks like.
