Netflix cuts 6% of global workforce

Netflix is reducing its global workforce by 6%, or about 1,000 positions, marking its largest layoffs since 2022, as reported by the Wall Street Journal. The move is part of a broader strategy to address concerns about subscriber engagement and investor confidence, despite the company's strong viewer numbers and record content consumption.

Layoffs target key departments

In an email to employees, co-CEOs Greg Peters and Ted Sarandos stated that the majority of the layoffs would affect the product, technology, legal, and human resources teams. They emphasized the need to carefully allocate resources to achieve Netflix’s mission of entertaining the world.

Subscriber engagement remains a challenge

Netflix has faced difficulties in retaining the interest of existing subscribers, who are spending less time watching content on the platform. This has raised concerns about the company’s ability to maintain growth and justify price increases, prompting efforts to attract viewers through new content formats and services.

Strategies to boost engagement

In response to these challenges, Netflix has introduced live programming channels, bundled streaming deals, and expanded its catalog to include video podcasts, YouTube creators’ shows, and live sports events. These changes aim to enhance viewer interaction and retain existing subscribers.

Stock performance and investor concerns

Netflix’s shares have fallen more than 40% over the past 12 months and nearly 50% since its peak in June 2025. Investors are also concerned about the potential impact of AI content creation on the streaming industry, as highlighted by Bank of America in July.

Global content success amid U.S. struggles

Analysts from Deutsche Bank suggested that the weakness in the U.S. market could be due to a lack of creative success, though Netflix has achieved global hits like the film War Machine, which recorded 147 million views, and the series His & Hers, which exceeded 100 million views. In the first half of 2026, subscribers watched more than 97 billion hours of programming, a 2% increase from the previous year.

Future plans and financial outlook

Peters and Sarandos stated that Netflix will continue to invest in high-impact areas but emphasized the need for targeted choices across the company to satisfy members, partners, employees, and investors. The layoffs are happening just before the release of the company’s quarterly results, and the co-CEOs said Netflix remains on track to meet its earnings forecasts for the current fiscal year.