Netflix cuts 6% of workforce in biggest layoffs since 2022 ahead of results
Key Facts
Netflix told employees in an internal memo on Wednesday that it was cutting about 6% of its workforce, or roughly 1,000 jobs, ahead of its third-quarter results, according to Reuters. Most of the layoffs are concentrated in product, technology, legal and human resources teams, the departments identified in the memo as falling within the scope of the cuts. The move marks Netflix's biggest round of job cuts since 2022, according to the Wall Street Journal, which put the scale of the latest layoffs in the context of previous reductions. The company had disclosed in its annual report filed with the U.S. Securities and Exchange Commission that it employed about 16,000 people full time worldwide. That figure was as of December 31, 2025, before the round of layoffs management announced to employees in October 2026.
Management said decisions on allocating staff and resources were based on discipline in setting priorities, according to Reuters, explaining its position on the announced job cuts. The agency quoted management as saying the company needed to be "disciplined in prioritizing our people and resources," explaining its approach to resource allocation. The co-chief executives said in the memo, reported by CBS News, that Netflix's business was strong and continuing to grow, alongside the announcement of the job cuts. They added that the company remained on track to meet its full-year forecast, maintaining management's stated position on business performance for the year. The Wall Street Journal, meanwhile, described the company as facing slowing growth and declining customer engagement in its coverage of developments in content leadership.
Netflix reported revenue of 12,559,938 thousand dollars in the second quarter of 2026, according to its quarterly report filed with the U.S. Securities and Exchange Commission. Revenue in the corresponding period of 2025 was about 11,079,166 thousand dollars, according to the company's comparison with the same quarter a year earlier. Netflix attributed revenue growth primarily to increased memberships, price increases and higher advertising revenue, identifying the sources of the increase in its business during the period. The company posted quarterly net income of 3,401,414 thousand dollars in the second quarter of 2026, according to the same financial filing. Its operating margin fell to 33.4% in that quarter from 34.1% in the second quarter of 2025, alongside the increase in revenue from the corresponding period.
On viewing, Netflix said in its shareholder letter that viewing hours rose 2% in the first half of 2026. The company compared that increase with growth of 1.5% during 2025, using the previous year's performance as a benchmark for the pace of growth recorded in the first half. In a subsequent development following the announcement of job cuts, Netflix named Peter Rice as chief content officer, succeeding Bela Bajaria, according to a statement published by the company. The announcement of the change in content leadership comes as the Wall Street Journal reported on Netflix's difficulties in maintaining viewer engagement. According to the company's announcement, content leadership passes to Rice after Bajaria had held the position since January 2023, according to the career timeline reported by Reuters.
Rice's responsibilities in his new role include overseeing scripted and unscripted series, according to Netflix's statement on his appointment as chief content officer. His remit also extends to films and live events worldwide, within the scope of operations the company outlined for its new content chief. Rice previously served as chairman of Walt Disney Television, according to Reuters, before being selected to take over at Netflix from Bajaria. Bajaria joined Netflix in 2016 before later moving into content leadership, according to the agency's account of her career at the company. She became chief content officer in January 2023, the position in which Netflix announced Rice would succeed her as part of the latest change in leadership of the business.
Netflix's annual revenue forecast ranges from 51.0 billion to 51.4 billion dollars for 2026, according to the shareholder letter released with its second-quarter results. The company said in that letter that it had narrowed its revenue forecast to those levels, the annual outlook management reaffirmed when announcing the cuts. Netflix is scheduled to publish its third-quarter results on October 20, 2026, at about 1:01 p.m. Pacific Time, according to its investor relations announcement. Management's earnings interview begins the same day at 1:45 p.m. Pacific Time, according to the company's quarterly reporting schedule. After the results announcement, Rice takes over as chief content officer effective October 26, according to the date specified in Netflix's statement on his appointment.