Netflix Cuts About 1,000 Jobs as Competition for Viewers Intensifies

Netflix is cutting about 1,000 jobs, roughly 6% of its global workforce. The layoffs, its largest since 2022, will primarily affect employees in product development, technology, legal and human resources.

The reductions were disclosed in an internal memo from co-CEOs Ted Sarandos and Greg Peters, first reported by The Wall Street Journal. The executives said Netflix must prioritise resources carefully while continuing to invest in areas that support growth.

Netflix said it remains on track to meet its full-year financial forecast. According to its 2025 annual regulatory filing, the company employed approximately 16,000 full-time workers at the end of last year.

Netflix Faces Growing Competition for Viewing Time

Netflix competes with YouTube, TikTok, and Instagram for audiences’ attention as social video consumption increases. eMarketer research on video consumption has documented changing viewing habits, including TikTok’s growing engagement.

According to a report on YouTube’s viewing growth, research firm Digital i found that YouTube surpassed Netflix in average daily viewing time per account across 20 international markets in 2025. YouTube averaged 99.1 minutes daily, compared with Netflix’s 93.4 minutes.

The layoffs also follow Netflix’s unsuccessful bid for Warner Bros. Discovery’s streaming and studio businesses, which Paramount Skydance ultimately won. The assets would have expanded Netflix’s entertainment portfolio through properties including HBO and Warner Bros.’ production operations.

Netflix Continues Investing in Advertising and New Content

Netflix has been expanding beyond traditional subscription streaming through its advertising-supported tier, live sports, gaming and children’s programming. It has also introduced AI-supported features, video podcasts and short-form content while redesigning its mobile app.

The company reported $45.2 billion in revenue for 2025, with advertising revenue exceeding $1.5 billion. Despite the workforce reductions, Netflix plans to maintain investment in selected growth areas while meeting its full-year financial targets.