Netflix May Cut 850 Jobs in 5% Workforce Reduction Ahead of Q3 Earnings

Netflix is preparing to lay off approximately 5% of its workforce as part of an operational restructuring, according to a report by Puck News. The announcement could arrive ahead of the streaming giant’s third-quarter financial earnings release scheduled for October 20. Based on Puck's estimate of Netflix's global workforce at around 17,000 employees, the 5% reduction would eliminate roughly 850 positions. Factoring in the company’s year-end 2025 regulatory filing of approximately 16,000 full-time staff, the total may sit closer to 800. Largest Reduction Wave Since 2022 If enacted, the round will represent Netflix’s largest workforce contraction since 2022, when the service cut 150 jobs in May and 300 in June following a quarterly subscriber drop of 200,000. Smaller reductions took place earlier this year, including cuts to its global product team. The corporate pressure stems from several key indicators:

• Share Performance: Netflix stock has declined by more than 40% over the trailing year.
• Muted Engagement: Viewer engagement rose by only 2% across the first half of 2026, alongside lingering fallout from last year’s failed bid for Warner Bros.
• Media Sector Trends: The planned cuts mirror wider industry retrenchment, including three separate rounds of layoffs at Disney this year. "Overall, we're not growing as fast as I want us to," co-CEO Ted Sarandos noted during a Bloomberg event, highlighting live programming as an operational drag that absorbs roughly 5% of content expenditure while driving only 1% of overall viewership. Operating Expenses Outpacing Top-Line Growth While Netflix increased revenue by 13% to $12.6 billion during the April-to-June quarter, non-content operational expenses escalated at a faster clip:
• Overhead Growth: Combined marketing, technology, and administrative costs climbed 18% to approximately $2.3 billion.
• Tech Expansion: Technology and development expenses jumped 22%, driven predominantly by a $142 million expansion in personnel costs.
• Headcount Influx: The company added roughly 2,000 full-time staff throughout 2025. Although revenue expansion cooled from 18% in late 2025 down to 13%—with guidance pointing toward 12% for the September quarter—the streamer continues to target a 31.5% operating margin for 2026. The workforce reduction is expected to align operational overhead with slower sales while leaving the direct content budget intact.