Netflix Lays Off 6% of Workforce in Largest Cut to Date

Netflix is cutting 6 percent of its workforce, according to a memo sent to employees by co-CEOs Ted Sarandos and Greg Peters. The layoffs, first reported by Variety, amount to roughly 1,000 employees and mark the company's largest reduction so far.

The move follows a report last week that Netflix was planning to cut 5 percent of its staff. The final figure came in slightly higher. Affected teams include product, technology, human resources, and legal, according to the memo.

In the memo, the CEOs framed the decision as a matter of focus. "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," they wrote. They added that Netflix will "continue to invest aggressively in high-impact areas to improve our service and further drive growth and innovation," and that doing so "means making focused choices across the business so we can keep delivering for our members, partners, employees, and investors."

This is not Netflix's first round of cuts. In 2022, the company eliminated 150 jobs in May and another 300 in June, citing an effort to reduce costs after slower revenue growth. Those cuts were smaller than the current one.

The layoffs arrive against a backdrop of financial growth. Netflix's revenue reached $45.2 billion in 2025, with net income of $11 billion and 325 million subscribers. The company's advertising business also expanded, more than doubling its revenue to $1.5 billion between 2024 and 2025. That growth was driven in part by its ad-supported plan, priced at $7.99 per month, which had over 9.4 million subscribers as of May 2025.

The combination of rising revenue and significant layoffs suggests a strategic reallocation rather than a response to financial distress. Netflix appears to be trimming areas it deems lower priority while continuing to invest in what it considers high-impact work. The memo's language about "focused choices" aligns with that interpretation, though the company has not specified which projects or roles will be affected beyond the team-level details.

For audiences, the immediate impact is unclear. Layoffs in product, technology, HR, and legal could affect how quickly new features are developed or how smoothly the service operates, but Netflix has not said whether any specific products or release plans will change. The company has not announced cuts to content spending or programming, and the memo does not mention any changes to release availability.

For creators and distribution partners, the announcement may signal a more cautious approach to internal operations, but there is no evidence in the memo that content acquisition or production budgets are being reduced. Netflix's subscriber and revenue growth give it room to maintain spending on original programming if it chooses.

The layoffs also highlight the tension between growth and cost discipline at a company that has long positioned itself as a aggressive investor in content and technology. The CEOs' memo emphasizes both "aggressive" investment and "disciplined" prioritization, leaving open how those two goals will be balanced in practice.

The Verge reported the memo and the layoff details. Variety obtained a copy of the memo and first reported the 6 percent figure. Netflix has not publicly commented beyond the memo.

What remains unknown is how these cuts will affect Netflix's day-to-day operations, product roadmap, or release schedule. The company has not provided a timeline for the layoffs or indicated whether further reductions are planned. For now, the announcement is a significant internal restructuring at a company that continues to report strong financial results.