Netflix is planning significant layoffs, with about 5% of its workforce—potentially 800 employees—expected to be affected. This move comes as the streaming giant grapples with heightened competition and pressures to retain subscribers. The cuts will primarily impact the creative team, particularly those working on feature projects.
These layoffs are anticipated to be the largest since 2022. Netflix has been facing scrutiny from investors regarding subscriber engagement. Despite an increase in content spending, view hours rose only 2% in the first half of 2026 compared to the previous year.
Co-CEO Ted Sarandos acknowledged the need for faster growth, while the company explores various metrics of engagement, including its investment in live programming, which has driven some subscription sign-ups. However, skepticism remains among investors, especially with YouTube maintaining a leading position in U.S. streaming hours significantly outperforming Netflix.
This isn’t the first round of layoffs for Netflix; in 2022, the company let go of around 450 employees following its first subscriber losses in over a decade. Recent adjustments in its gaming division, including the closure of two studios, also indicate ongoing changes within the company as it strives to adapt to a challenging market.
