Netflix slashes 1,000 jobs in largest workforce reduction in four years

Netflix has announced it will be reducing its global workforce by 6% in a significant downsizing effort. According to an internal memo, approximately 1,000 employees will be let go, primarily from product, legal, technology, and human resources departments. This marks Netflix's largest workforce reduction in four years, following several years of sluggish growth and fluctuating customer interest.

The company's struggle with engagement has not been new, but Netflix has attempted various strategies to counteract this, with mixed results. Recently, Netflix introduced a kid-friendly gaming app called Playground, celebrated the 10th anniversary of Stranger Things with a VHS-style tribute, and even considered a free, ad-supported tier to retain subscribers.

Despite these initiatives, some projects have been more successful than others. For instance, Netflix collaborated with Rockstar to host an extended look at Grand Theft Auto VI, which garnered 31.1 million views in just four days and crashed the company's servers. However, other ventures, such as a potential movie partnership with Sega based on the Crazy Taxi franchise, are still years away.

Netflix's decision to cut jobs arrives just before the company releases its next quarterly earnings report. As of now, the streaming giant's shares have dropped by around 22% year-to-date, with performance significantly cooling since its peak in the summer of 2025. Despite this downturn, Netflix's market capitalization remains substantial at approximately $292 billion.