The short answer
Netflix is cutting about 6% of its workforce, around 1,000 people, according to a memo that co-CEOs Ted Sarandos and Greg Peters sent to employees on October 14, 2026, which CNBC obtained and which Netflix confirmed to TechCrunch. The cuts fall mostly on the product, technology, legal and human resources teams, per CNBC. Variety described it as the biggest layoff in the company's history, measured against the roughly 16,000 full-time employees Netflix reported at the end of 2025.
What happened
The Wall Street Journal first reported the cuts, citing the internal memo, according to TechCrunch and the Associated Press. The co-CEOs sent the memo on Wednesday morning, October 14, per Variety, and a Netflix spokesperson told Variety and CNBC that the company had no comment beyond the memo. Six days later, on October 20, Netflix's third-quarter shareholder letter referred to the cuts as "recently announced headcount reductions" and put a cost on them.
Who is affected
Most of the roughly 1,000 cuts hit the product, technology, legal and human resources teams, per CNBC, Variety and the AP. Netflix had about 16,000 full-time employees worldwide at the end of 2025, according to the annual filing cited by TechCrunch and the AP. The sources used here do not give a split by office or country, and none reports a state WARN notice for this round. A WARN notice is a filing an employer makes with a state when it plans a large layoff at one site.
When it takes effect
The memo did not give last working days, per the outlets that reported it. Netflix's third-quarter shareholder letter, dated October 20, 2026, says the fourth-quarter 2026 operating margin forecast of 26.0% includes about 120 basis points of negative impact from the headcount reductions, which places the cost of the cuts in the fourth quarter. The same letter says the full-year 2026 margin guidance of 31.5% includes about 30 basis points of impact from what it calls its Q4 headcount reductions.
What the company said
In the memo, Sarandos and Peters wrote that the business is strong and growing and that Netflix remains on track for its full-year forecast, per CNBC and Variety. They said the company has to be disciplined about where it puts its people and resources as it invests in future growth, per the AP. The AP quoted the memo: "Decisions like these are never easy, and we don't take them lightly." In its October 20 shareholder letter, Netflix said the organizational changes let it keep investing aggressively in high-impact areas.
Earlier cuts at Netflix
- March 2026: Netflix cut several dozen people from its global product team as part of an internal reorganization, with some made redundant and others moved to new roles, according to Variety, which said Deadline first reported the cuts. Netflix declined to confirm numbers. Variety reported that the creative studio unit, which makes posters, in-app trailers and similar marketing, was affected.
- 2022: Netflix cut about 450 staff after losing 200,000 subscribers in the first quarter of that year, per Variety.
Questions people ask
How many people did Netflix lay off in October 2026?
About 1,000 people, or roughly 6% of the workforce, according to a memo from co-CEOs Ted Sarandos and Greg Peters that CNBC obtained and that Netflix confirmed to TechCrunch. Netflix had about 16,000 full-time employees at the end of 2025, per its annual filing as cited by TechCrunch.
Which teams were affected?
The product, technology, legal and human resources teams took most of the cuts, per CNBC, Variety and the Associated Press. Netflix did not publish a breakdown by office or country.
What reason did Netflix give?
The co-CEOs said in the memo that the business is strong and on track for its full-year forecast, but that Netflix must be disciplined about where it prioritizes people and resources as it invests in future growth, per CNBC and the AP. Netflix's October 20 shareholder letter said the changes allow it to keep investing in high-impact areas.
What will the layoffs cost Netflix?
Netflix's third-quarter 2026 shareholder letter says the fourth-quarter operating margin forecast of 26.0% includes about 120 basis points of negative impact from the headcount reductions, and the full-year 2026 margin guidance of 31.5% includes about 30 basis points. The letter does not state a dollar figure for severance.
Was this Netflix's biggest layoff?
Variety described it as the biggest layoff in Netflix's history. The previous large round, in 2022, cut about 450 people, per Variety, and a smaller cut of several dozen product-team staff came in March 2026.