Netflix Confirms plans to lay off about 6%, which is nearly 1,000 employees.

The streaming giant stated that most of the layoffs will affect its product, technology, legal, and human resources departments. The company said it will "continue to invest actively in high-impact areas" to improve services and indicated that it is still on track to meet its annual performance expectations as planned.

According to the annual report submitted to regulatory authorities by Netflix, as of the end of last year, the company had a total of 16,000 full-time employees.

The Wall Street Journal was the first to report this news, citing an internal memo sent to employees that stated: Netflix Co-CEOs Ted Sarandos and Greg Peters wrote in the memo, "Our mission—to bring entertainment to the world—is ambitious, and to achieve this goal, we must maintain discipline in the prioritization of our personnel and resources."

This layoff comes after a lengthy bidding war between Netflix and Paramount Skydance for Warner Bros. Discovery's streaming and film production business. Netflix lost this bidding war earlier this year. Netflix was originally interested in Warner Bros. Discovery's assets, including its studios, HBO, its streaming platform, games, as well as television networks such as CNN and HGTV.

For a long time, Netflix has been the dominant television app, but in recent years, it has faced increasingly fierce competition from YouTube, TikTok, Instagram, and various social media apps in terms of capturing user attention. According to reports from several market research institutions, social media apps such as TikTok are gradually catching up with Netflix in terms of user engagement, and it is said that YouTube has surpassed Netflix in average daily viewing time by 2025.

This streaming media giant has been striving to extract more value from its subscription users, including raising prices, expanding ad-supported packages, and investing in live events, sports, gaming, and children's programs to increase user engagement.

Netflix continues to bet on AI's support features, games, video podcasts, and attempts short-form video content. At the same time, it is redesigning its mobile app in order to compete with social media platforms for user attention.

Netflix reported revenues of $45.2 billion in 2025, stating that advertising revenue has risen to over $1.5 billion.