Netflix May Cut 850 Jobs in Biggest Layoff Round Since 2022

Netflix is reportedly planning to cut around 850 jobs, or about 5% of its global workforce, as part of a wider organisational restructuring. According to a report by Puck News, the announcement could come as early as next week, ahead of the company’s third-quarter earnings report scheduled for October 20, 2026.

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The proposed job cuts have not been confirmed by Netflix. The company declined to comment on the report, and the departments likely to be affected have not been identified.

Why Is Netflix Considering Job Cuts?

The reported restructuring comes as Netflix faces pressure to maintain audience engagement and sustain revenue growth. The company’s share price has declined over the past year, while viewing hours increased by only 2% year-on-year in the first half of 2026.

Netflix co-CEO Ted Sarandos recently acknowledged that the company was not growing as quickly as he wanted. The company is also facing increasing competition for viewers and advertising revenue.

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If implemented, the proposed cuts would be Netflix’s largest round of layoffs since 2022, when the company eliminated hundreds of jobs following subscriber losses and concerns about slowing growth.

Rising Costs Add to Pressure

Netflix’s revenue increased 13% to $12.6 billion in the April–June quarter. However, its marketing, technology and administrative expenses rose 18% to approximately $2.3 billion.

Technology and development expenses increased 22%, partly due to higher personnel costs. Netflix added around 2,000 full-time employees during 2025, according to the report.

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The company is expected to discuss its growth plans, costs, and business outlook when it reports its third-quarter results on October 20.

The reported layoffs remain unconfirmed. Netflix has also not disclosed whether any India-based employees would be affected.

However, in March this year, the company announced it’s significantly scaling its post-production capabilities in India by announcing the launch of a new Eyeline Studios facility in Hyderabad.

Final Comments

The proposed job cuts reflect the workforce and cost decisions facing large technology-enabled companies as they balance employee expenses with business growth.

For HR leaders, the development highlights the importance of workforce planning, organisational efficiency and aligning staffing levels with business requirements.