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

Netflix is set to lay off nearly 1,000 employees, accounting for about 6 percent of its workforce, due to rising costs and increased competition, according to a report by the Wall Street Journal. The streaming service's product, tech, legal, and human resources departments are expected to be the hardest hit. The company currently employs 16,000 full-time staff as of the end of last year, with revenue reaching $45.2 billion in 2025, including a rise in ad revenue to over $1.5 billion.

Despite announcing aggressive investment in high-impact areas, Netflix assured employees that it remains on track to meet its full-year forecast. Co-CEOs Ted Sarandos and Greg Peters emphasized the company's mission to entertain the world, requiring disciplined prioritization of resources and people. This move follows a series of layoffs at major tech companies, including Amazon and Oracle, as they grapple with the costs associated with building AI infrastructure.

In 2026, an estimated 644 layoffs have occurred, impacting 193,698 individuals, with an average of 677 layoffs per day. Earlier this year, Netflix ended a bidding war with Paramount Skydance for Warner Bros Discovery's streaming and studio businesses, opting not to match the higher all-cash offer of $31 per share. The streaming platform had shown potential in acquiring Warner Bros' assets, including its studios, HBO, streaming platforms, games, and TV networks.

Netflix has also faced competition from social media apps like YouTube, TikTok, and Instagram, prompting the company to invest in live events, sports, gaming, children's programming, AI-based features, gaming, and video podcasts. Additionally, Netflix has redesigned its mobile app to compete with social media platforms for users' attention.