Netflix to lay off nearly 1,000 employees amid rising costs, stiff competition

A Netflix logo is shown on a TV screen ahead of a Swiss vote on a referendum called "Lex Netflix" in this illustration taken May 9, 2022. REUTERS/Denis Balibouse/Illustration/File photo

Amid sweeping layoffs by tech giants as a result of AI, Netflix is reportedly cutting nearly 1,000 jobs, or about 6 per cent of its workforce.

The streaming giant’s product, tech, legal, and human resources departments are expected to be the most affected, according to a report by Wall Street Journal. Up till the end of last year, Netflix had 16,000 full-time employees, as per regulatory filings. In 2025, Netflix reported revenue of $45.2 billion, and an increase in ad revenue to over $1.5 billion.

The company has reportedly said it will “continue to invest aggressively in high impact areas” to improve its service. It also added that Netflix is on track to deliver its full-year forecast.

“Our mission—to entertain the world—is ambitious, and delivering on it requires us to be disciplined about where we prioritise our people and resources,” Netflix co-CEOs Ted Sarandos and Greg Peters were quoted as saying by WSJ in an internal memo sent to employees.

Several tech giants like Amazon and Oracle have undertaken layoffs and other cost-cutting measures in order to offset the capital being poured into building out AI infrastructure. 

So far in 2026, there have been an estimated 644 layoffs at tech companies with 1,93,698 people impacted at a pace of 677 people per day. In 2025, over 2,45,953 people were impacted by layoffs in the tech sector (674 people per day), according to TrueUp, a tech job-seeking platform that also operates one of the most widely cited tech layoff trackers.

Netflix’s latest round of layoffs comes after pulling out of a protracted bidding war with Paramount Skydance for Warner Bros Discovery’s streaming and studio businesses.

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While the streaming platform saw great potential in Warner Bros’ assets, including its studios, HBO, streaming platforms, games, and TV networks such as CNN and HGTV, Netflix officially dropped its bid after declining to match Paramount Skydance’s higher all-cash offer of $31 per share.

Over the past few years, Netflix has also been facing intense competition from social media apps such as YouTube, TikTok, and Instagram over user engagement and daily viewing metrics.

On its part, Netflix has taken certain steps such as investing in live events and sports, gaming, and children’s programming to increase user engagement. Additionally, it has bet on AI-based features, gaming, and video podcasts. The company is also dabbling in short-form video content alongside redesigning its mobile app to compete with social media platforms over users’ attention.