Netflix Is Laying Off 6% of Its Workforce, About 1,000 Jobs, in Its Biggest Cuts Since 2022
Netflix is cutting about 6% of its workforce, roughly 1,000 roles across product, tech, legal and HR, its biggest layoff since 2022, days ahead of third-quarter earnings on October 20.
The memo
Netflix told staff on Wednesday that it is cutting about 6 percent of its workforce, roughly 1,000 jobs, in its largest round of layoffs since 2022.
Co-CEOs Greg Peters and Ted Sarandos announced the cuts in an internal email. Most of the roles are in product, technology, legal and human resources.
The memo framed the move as discipline, not distress, saying the business is strong and growing and that the company remains on track for its full-year forecast. Netflix had about 16,000 employees at the end of last year, and its last big reduction, in 2022, cut around 450 jobs after its first subscriber decline in a decade.
A harder year than the numbers suggest
Netflix is still the largest premium streamer on the planet, with more than 325 million subscribers. It made $45.2 billion in revenue and $11 billion in net income in 2025, and it is guiding to $51.0 to $51.4 billion of revenue in 2026 with a 31.5 percent operating margin.
But the stock tells a different story. Shares are down about 25 percent this year, though they rose 0.7 percent on Wednesday after the layoff news.
Investors are worried about engagement, the hours users spend on the platform, as YouTube and TikTok compete for the same attention with free content. Netflix also lost the bidding war for Warner Bros Discovery's studio and streaming assets, which Paramount Skydance closed in a $110 billion deal this month.
Earnings in six days
The timing puts a spotlight on October 20, when Netflix reports third-quarter results. Analysts will be listening for any link management draws between the cuts, margins and guidance.
Do you want to see how to make more plays? Do you want to find gains yourself? Unusual Whales helps you find market opportunities through our market tide, historical options flow, GEX, and much, much more. Create a free account here to start conquering the market with Unusual Whales
Options market and stocks to watch
NFLX is the whole trade this week. Layoff headlines six days before earnings usually mean implied volatility stays bid into the print, and the October 20 report will decide whether the cuts read as margin discipline or growth trouble.
The competitive set matters too. GOOGL owns YouTube, the engagement rival named in every Netflix bear case, and PSKY is the newly merged Paramount Skydance that just took the Warner assets Netflix wanted.
DIS rounds out the streaming complex. Watch straddle pricing in NFLX into earnings and any unusual call flow in PSKY as the combined company's strategy comes into focus. Track media movers on the Unusual Whales news feed.
Want more market intelligence? Create your free Unusual Whales account for options flow, market tide, GEX, and the full toolkit.