Netflix could cut around 850 jobs as the streaming giant faces pressure over weakening viewer engagement and its share price, according to a report by Puck's Matthew Belloni.
The reported cuts would represent approximately 5 per cent of Netflix's estimated 17,000-strong global workforce. However, the figure is an estimate based on Puck's reported headcount, rather than a confirmed number of redundancies. Netflix has not announced the cuts, and the departments and locations potentially affected remain unclear.
A Netflix representative declined to comment to Puck. The report said the restructuring could be announced as early as the following week.
The reported job cuts come as Netflix faces questions about viewer engagement, competition in the streaming market and pressure on its share price. However, the company has not confirmed that these factors are driving any planned redundancies.
Streaming Rivalry Adds to Pressure
Netflix faces competition from traditional media companies and digital platforms such as YouTube, which is attracting a growing share of viewing time and advertising spending. The increasingly competitive market has prompted streaming companies to reassess their spending and business strategies.
'Steep, though in line with reductions at other major media and tech companies lately,' Belloni noted.
Netflix has also been expanding beyond its traditional subscription business, investing in advertising, live programming and gaming to diversify its revenue streams. The company has not confirmed whether these investments are connected to the reported restructuring.
Rising Costs Outpace Revenue Growth
Netflix reported revenue of $12.6 billion (£9.5 billion) in the second quarter of 2026, a 13 per cent increase compared with the same period a year earlier, according to its financial results filed with the US Securities and Exchange Commission.
However, several major operating expenses rose faster than revenue. Combined sales and marketing, technology and development, and general and administrative expenses increased by approximately 18 per cent year on year to $2.3 billion.
Technology and development expenses rose by around 22 per cent to approximately $1 billion. Netflix's filing attributed part of the increase to higher personnel-related costs, including a $142 million rise in those costs.
The figures highlight the pressure on Netflix to manage spending while continuing to invest in its platform and expand its business. They do not, on their own, establish that rising costs are the reason for the reported job cuts.
Previous Layoffs Followed Subscriber Losses
Netflix last made major public job cuts in 2022, during a period of slowing growth and subscriber losses. The company subsequently faced scrutiny over its ability to sustain growth as competition intensified.
'Netflix does restructurings periodically, though its last big public layoff was in 2022, amid the Great Netflix Correction and a period of slowing growth, and that reduction hit only about 150 employees, or about 2 percent of the workforce,' Belloni added.
Belloni also said Netflix's share price had been under pressure following its failed bid for Warner Bros. and amid slowing engagement growth on the platform. These are factors he identified in his report, rather than confirmed explanations for the reported redundancies.
Netflix Faces Pressure Ahead of Earnings
Netflix is scheduled to report its third-quarter 2026 results on October 20. The earnings announcement is likely to put renewed attention on the company's growth strategy and its efforts to maintain viewer engagement.
'Earnings are October 20, and investors likely want to hear more from co-C.E.O.s Ted Sarandos and Greg Peters about plans to juice that growth and turn around the stock. Now, at least, they'll hear about the company becoming more "efficient."'
The reported job cuts remain unconfirmed, and Netflix has not identified which teams or regions could be affected. Nor has the company established a link between the reported restructuring and its spending, competition or engagement trends.
Investors will be watching for updates on Netflix's advertising business, live programming and gaming initiatives, as well as its broader growth strategy. Whether the reported cuts form part of a wider effort to improve efficiency remains unclear.
