Netflix laying off 6% of its workforce: What to know
From DVDs to Academy Awards: The history of Netflix
Netflix paved the way for countless other entertainment streaming services to follow.
Netflix announced that it is laying off six percent of its workforce, or roughly 1,000 employees, according to an internal memo obtained by The Associated Press and Reuters.
The move comes as the streaming giant makes wider "organizational changes" and faces tough competition from other platforms.
Netflix laying off 6% of workforce
What They’re Saying: According to the media outlets, the bulk of the job cuts would be in Netflix's product, tech, legal and human-resources teams, the email Co-CEOs Greg Peters and Ted Sarandos sent to employees on Wednesday showed.
"Decisions like these are never easy, and we don’t take them lightly," Peters and Sarandos wrote in the memo. "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."
Netflix is cutting roughly 1,000 jobs, or 6% of its workforce, primarily across product, technology, legal and human-resources teams.(Credit: Mario Tama/Getty Images)
They maintained business was strong – but that Netflix needed to be "disciplined about where we prioritize our people and resources" as it invests in future growth and "high impact areas to improve our service."
The layoffs announced Wednesday mark the biggest round of cuts the California-based company has rolled out in years.
Netflix’s profits grow despite layoffs
Big picture view:
Between membership signups and price increases, Netflix’s profit has grown this year.
In its second financial quarter, the company earned $3.4 billion and racked up revenue of $12.56 billion – up 9% and 13%, respectively, from the same period last year.
Despite this, competition in the streaming space is growing more crowded overall. Netflix continues to be a dominant player (accounting for 19% of the market per the latest data from streaming guide JustWatch), but rivals like Amazon's Prime Video and Disney+ are close behind.
RELATED: Paramount acquires Warner Bros.: What it means for streaming apps and your wallet
Last week, and after months of delays and legal challenges, Paramount Skydance completed its acquisition of Warner Bros. Discovery in a deal valued at about $81 billion in equity, or nearly $111 billion including debt.
This means HBO Max and Paramount+ are also now under the same roof. Netflix withdrew from the bidding in February after declining to match Paramount's offer. Netflix's proposed transaction covered a narrower group of Warner assets, while Paramount pursued the entire company.
At the end of 2025, per regulatory filings, Netflix had about 16,000 full-time employees worldwide.
The Source: The information for this story was provided by The Associated Press and Reuters. This story was reported from Los Angeles. Previous FOX Local reporting contributed.