Netflix Confirms Largest Layoffs Since 2022 as Shares Fall More Than 40%

Netflix will cut approximately 6% of its global workforce, eliminating roughly 1,000 jobs, according to a Wall Street Journal report confirmed by the company on October 14. The reductions mark the streaming giant's largest staff reduction since 2022 and come as the company grapples with slowing revenue growth, weaker subscriber engagement, and intensifying competition.

The layoffs arrive one week before Netflix reports third-quarter earnings on October 20, though the company says it is maintaining its full-year outlook. Netflix had guided for 13% to 14% revenue growth in 2026 after posting second-quarter revenue of $12.56 billion, up 13% year over year, with an operating margin of 33.4%.

Shares of Netflix have fallen more than 40% over the past year, with the stock trading near $70, which puts it at roughly 20 times forward earnings following the selloff. The cuts are widely seen as a cost reset aimed at protecting margins heading into earnings, with analysts noting that engagement growth has become the critical metric for any recovery in the stock.