Netflix will eliminate around 1,000 jobs, equivalent to 6% of its workforce, in the largest workforce reduction in the company’s history. The decision was announced Wednesday by co-CEOs Ted Sarandos and Greg Peters in an internal message to employees. The cuts will primarily affect the product, technology, legal, and human resources departments.

In the statement, the executives said the company is experiencing a period of growth but needs to reorganize its resources to focus investment on strategic areas. “Our mission — to entertain the world — is ambitious, and delivering on it requires us to be disciplined about where we prioritize our people and resources,” they said.

The move comes amid strong financial results. In 2025, Netflix reported revenue of $45.2 billion, a 16% year-over-year increase, and net income of $11 billion, up 26% from the previous year. The platform, which has more than 325 million subscribers worldwide, had approximately 16,000 full-time employees at the end of the year.

For 2026, the company projects revenue of between $51 billion and $51.4 billion, representing growth of 13% to 14%. It also expects to achieve an operating margin of 31.5%. However, investors have expressed concerns about a slowdown in user engagement during the first half of the year. In the second quarter, Netflix reported revenue of $12.6 billion, up 13.4% year over year, although its guidance for the following quarter fell short of market expectations.

The layoffs add to a series of cuts the company has made since 2022, when it eliminated around 450 jobs after reporting its first subscriber decline in more than a decade. In early 2026, Netflix also reduced the size of its global product team in a smaller-scale restructuring.

Sarandos and Peters said Netflix would continue investing in areas with the greatest growth potential and developing its service. They also acknowledged the impact of the layoffs and said the company would support affected employees throughout the transition, with procedures varying by country.

The announcement comes just days before Netflix is scheduled to report its next financial results on October 20. The company is seeking to sustain its expansion in an increasingly competitive streaming market, where revenue growth is accompanied by pressure from investors to improve performance and operational efficiency.