Netflix Prepares Largest Layoffs in Four Years as Stock Slides 22%

Netflix is planning what could be its largest round of layoffs in four years, cutting roughly 5% of a workforce that stood at 16,000 employees at the end of last year — a reduction of about 800 people, according to media reports.

The announcement could come as soon as this week, according to Puck, which first reported the news. The Los Angeles Times and other outlets later confirmed the plan, citing sources. Fast Company has reached out to Netflix for comment.

The timing lands days before Netflix's next earnings report, scheduled for October 20.

How big is this cut by Netflix standards?

Mass layoffs have been relatively rare at Netflix. The company's last large round came in 2022, when it cut 3% of its staff.

The broader tech industry tells a different story. Outplacement firm Challenger, Gray & Christmas found that technology companies announced 165,925 job cuts from January through September 2026 — a 54% increase over the same period in 2025.

Key figures at a glance:

• 5% of Netflix's workforce expected to be affected
• ~800 employees, based on the 16,000 headcount reported at the end of last year
• 3% of staff cut in Netflix's previous large round, in 2022
• October 20: Netflix's next scheduled earnings report

Why is Netflix cutting now?

Shares of Netflix Inc (Nasdaq: NFLX) have underperformed this year as the company's revenue growth forecast for 2026 has narrowed. The stock was down 22.74% year to date as of Friday's close. That contrasts sharply with the broader Nasdaq Composite, which is up 17.78% over the same period.

The slump marks a stark reversal for a company that spent the last decade as the market's standout performer. Netflix was the fastest-growing stock in the S&P 500 over the 2010s, with shares up 3,726%, CNBC reported at the time.

What has changed in Netflix's disclosure habits?

Subscriber growth drove Netflix's story through its 2010s heyday, but the company stopped reporting subscriber counts in 2025. More recently, it announced it would pull back on its "What We Watched" viewership reports, publishing them once a year instead of biannually.

For investors, the pattern is consistent: fewer operating metrics, a narrower revenue growth forecast, and now a workforce reduction — all pointing to a company managing itself as a mature business rather than a growth story.

The October 20 earnings report will offer the first official reading on how management frames the cuts — and whether investors accept the trade-off between leaner costs and slower growth.