Netflix has revealed plans to cut about 1,000 jobs globally, representing roughly 6 per cent of its workforce. The streaming giant also seeks to expand its advertising business, live sports and gaming offerings while reassessing its resource allocation amid concerns about slowing growth and weakening viewer engagement.
According to the streaming giant, the planned layoffs come as the company broadens its programming and viewing options, expanding into video podcasts, content featuring YouTube creators, live sports and other events, while exploring live television channels and bundles with other streaming services to diversify revenue and strengthen its competitive position.
Netflix co-chief executives Greg Peters and Ted Sarandos informed employees of the planned reductions in an email, with most cuts expected to affect the company’s product, technology, legal and human resources teams, according to reports.
“Our mission, to entertain the world, is ambitious, and delivering on it requires us to be disciplined about where we prioritise our people and resources,” the executives wrote, according to The Wall Street Journal.
Peters and Sarandos said Netflix would continue investing aggressively in areas with the greatest potential impact while making difficult decisions about how resources are distributed across the business. They also assured employees that the company remained on track to meet its full-year earnings forecast.
The planned job cuts represent Netflix’s biggest workforce reduction since 2022, when the company eliminated approximately 150 positions in May and another 300 in June.
At the time, Netflix said it was adjusting the growth of its costs to reflect slower revenue growth while maintaining investments in its business. The decision followed a quarterly decline in subscribers that ended more than a decade of consistent growth for the streaming platform.
The latest restructuring reflects the continued challenge of balancing operating costs with investment in programming, technology and new revenue opportunities as competition intensifies across the global entertainment industry.
The reported layoffs come as Netflix broadens its programming and viewing options in an effort to sustain audience interest and strengthen its competitive position.
The company has expanded into video podcasts, content featuring YouTube creators, live sports and other events. It has also explored live television channels and bundles with other streaming services as it seeks to diversify its offerings beyond its traditional on-demand programming model.
These initiatives form part of Netflix’s efforts to attract and retain viewers while finding new ways to generate revenue in an increasingly competitive market.
Despite concerns about growth and engagement, Netflix reported that subscribers watched more than 97 billion hours of content in the first half of 2026, representing a 2 per cent increase from the corresponding period a year earlier.
The company described viewer engagement as healthy, noting that its assessment considers not only total viewing time but also the quality and variety of its programming.
However, the modest increase in viewing hours highlights the pressure on the streaming giant to sustain audience growth while ensuring that its expanding investments deliver meaningful returns.
As Netflix reshapes its workforce and expands into new content formats, the company faces the challenge of maintaining its position in the global streaming market while exercising greater discipline over costs and resource allocation.