Netflix plans substantial layoffs, sources say
Netflix plans substantial layoffs, sources say
Wendy LeeFri, October 9, 2026 at 8:37 PM UTC
0
The Netflix logo is shown in this photo from the company's website, in New York, Feb. 2, 2023.(Richard Drew / )
Netflix plans a substantial round of layoffs as the streaming giant faces rising competition and pressure to retain its subscribers, according to people familiar with the job cuts.
The cuts are expected to impact 5% of the company‘s workforce, which could be 800 workers, according to one of the sources who were not authorized to comment. The job losses will affect the creative team including those working on features, the source said.
Netflix declined to comment. The planned cuts are believed to be the biggest at the Los Gatos company since 2022. The news was first reported by news outlet Puck.
Read more:Meet the Netflix executive who helps decide what 325 million people watch next
Netflix has been under scrutiny from investors over how much time its subscribers spend on the streaming service. View hours rose only about 2% in the first half of 2026 compared with a year earlier, even as content spending climbed.
“Overall we’re not growing as fast as I want us to, and we’re working on making that move faster,” said Netflix co-Chief Executive Ted Sarandos at the Bloomberg Screentime event last week.
Advertisement
Netflix has noted how engagement can be measured in different ways. For example, its investment in live programming helps spur significant subscription sign-ups, even though it represents a small percentage of watch time on the streaming service, the company has said.
Read more:Netflix is the king of streaming. So why is its stock down this year?
But some investors remain skeptical about the company’s future growth. Rival YouTube remains the leader in streaming viewing hours in the U.S. on TVs, representing 14.2% versus Netflix’s 7.8% in July, according to Nielsen. Netflix stock has also declined 43% compared to a year ago. On Friday, the stock closed at $70.30, down about 2%.
Netflix last conducted major layoffs in 2022 after the streamer reported subscriber losses for the first time in more than a decade. In May that year, the company laid off 150 workers and dozens of contractors and part-time workers in areas including its social media teams. The following month, it laid off 300 people or roughly 3% of its staff.
Recently, Netflix made changes to its games division. In August, the company closed its Hollywood-based gaming studio Night School and said it was in the process of closing its Helsinki, Finland-based gaming studio Moonloot.
Sign up for our Wide Shot newsletter to get the latest entertainment business news, analysis and insights.
This story originally appeared in Los Angeles Times.
Source: “AOL Money”
