Netflix is reportedly preparing to cut around 850 jobs as the streaming giant reviews its workforce amid concerns about slowing audience engagement and changing market conditions. The potential layoffs could affect approximately 5% of its employees, according to media reports citing sources familiar with the matter.
The reported job cuts could become Netflix’s biggest round of layoffs since 2022. However, the company has not officially confirmed the proposed workforce reduction, and details about the departments that could be affected remain unclear.
Netflix Layoffs May Be Announced Next Week
According to reports first published by Puck News, Netflix could announce the planned job cuts as early as next week. The reported timing comes just days before the company is scheduled to release its third-quarter financial results on October 20, 2026.
The exact number of affected employees has not been confirmed. Reports suggest that around 850 jobs could be at risk, although some estimates put the figure closer to 800, depending on the company’s actual workforce size.
If implemented, the move would mark a significant workforce reduction for Netflix, which has continued to invest in original films, television series, live programming, advertising and gaming.
Ted Sarandos Acknowledges Slower Growth
The reported layoffs came after Netflix co-CEO Ted Sarandos acknowledged that the company was not growing as quickly as he would like.
Speaking at Bloomberg’s Screentime event in Los Angeles, Sarandos said the company was working to accelerate its growth. His comments highlighted the challenge of maintaining audience engagement as competition across the streaming industry continues to increase.
Netflix has also been exploring new ways to attract viewers and generate revenue, including live events, advertising and other content formats. While these initiatives can help attract subscribers and advertisers, their contribution to overall viewing engagement can vary.
Why Is Netflix Facing Pressure?
Netflix continues to operate in a highly competitive entertainment market, where streaming platforms and digital video services compete for viewers’ time and advertising spending.
Audience engagement has become an important measure of the company’s performance. Reports have highlighted relatively modest growth in viewing hours during the first half of 2026, raising questions about whether Netflix can maintain its previous pace of expansion.
The company is also balancing spending on content, technology, marketing and employee costs. A potential workforce reduction could form part of a broader effort to manage expenses and align the organisation with its business priorities.
However, the reported layoffs should not be taken as evidence that Netflix’s business is shrinking overall. The company has continued to generate revenue, while its leadership has expressed a desire to achieve faster growth.
Netflix’s Previous Layoffs in 2022
Netflix last carried out major rounds of layoffs in 2022, following a period of subscriber losses and uncertainty about the streaming market.
The company cut hundreds of positions that year as it adjusted its operations to changing business conditions. The reported plans for 2026 could represent its largest workforce reduction since that period.
For employees and the wider entertainment industry, the latest reports raise fresh questions about hiring trends and the changing economics of streaming services.
What Happens Next?
Netflix’s upcoming third-quarter earnings report is likely to draw attention from investors looking for further details about revenue growth, viewing engagement, spending and the company’s business strategy.
For now, the reported reduction of around 850 jobs remains unconfirmed. More information about the timing, scale and possible impact of the layoffs will depend on any official announcement from Netflix.
The situation also reflects a wider challenge facing streaming companies: finding new ways to grow while managing costs in an increasingly competitive digital entertainment market.
