Netflix to cut 1,000 jobs as competition intensifies
Netflix will lay off approximately 6% of its workforce, citing the need for discipline in resource allocation. The move follows the company's loss in the Warner Bros. Discovery bidding war and rising pressure from social media platforms.
Netflix has announced plans to lay off approximately 1,000 employees, a reduction representing about 6% of its total workforce. The cuts will primarily affect the product, technology, legal, and human resources departments. The company stated that it remains on track to meet its full-year financial forecast and will continue investing in high-impact areas. This decision comes after Netflix lost a bidding war for Warner Bros. Discovery's streaming and studio businesses to Paramount's Skydance earlier this year. The layoffs occur as the company faces intensifying competition for user attention from social media platforms such as YouTube, TikTok, and Instagram. Reports indicate that YouTube surpassed Netflix in average daily viewing in 2025. In response to these competitive pressures, Netflix has been raising prices, expanding its ad-supported tier, and investing in live events, sports, gaming, and short-form video to retain subscribers. The company reported revenue of $45.2 billion in 2025, with ad revenue exceeding $1.5 billion. Ted Sarandos and Greg Peters emphasized that delivering on the company's mission to entertain the world requires being disciplined about where people and resources are prioritized.