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Netflix cuts about 6% of staff in biggest layoffs since 2022

Netflix cuts about 6% of staff in biggest layoffs since 2022

Money Moves

Netflix cuts 6% of staff and replaces its content chief as a weak ad forecast sinks the shares

October 21st, 2026: Co-CEOs face employees at town hall

Overview

Updated Oct 22

Netflix is cutting about 1,000 jobs, roughly 6% of its staff, and has replaced content chief Bela Bajaria with Peter Rice, the former Disney and Fox executive who now oversees a content budget of about $20 billion. Film chief Dan Lin also left, and the company told employees the cuts were part of an internal plan it called Project Meridian, according to the Wall Street Journal.

Revenue rose 11.8% to $12.87 billion in the third quarter, the slowest growth in nearly three years, and Netflix guided fourth-quarter profit below analyst estimates. It also cut its 2026 ad revenue forecast to about $2.7 billion from $3 billion, and shares fell nearly 6% after hours. Co-CEO Ted Sarandos said the company needs "better execution in the US."

Why it matters

If Netflix's growth keeps slowing, expect higher prices and more ad-supported viewing across streaming, including on your monthly bill.

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Key Indicators

~1,000
Jobs cut (6% of workforce)
Largest layoff round at Netflix since 2022, concentrated in product, tech, legal and human resources.
11.8%
Q3 revenue growth
Revenue of $12.87 billion, the slowest increase in nearly three years, per Reuters.
67 cents
Q4 earnings per share forecast
Below the 73 cents analysts expected; net income guidance was also shy of forecasts.
$2.7B
2026 advertising forecast
Cut from about $3 billion after some ad products rolled out slower than planned.
~6%
Share drop after Q3 report
Shares traded at $64.66 after hours; the stock was down more than 40% over the previous year.

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People Involved

GP
Greg Peters
Co-chief executive of Netflix
Called the layoffs a hard trade-off for long-term growth
 Ted Sarandos
Ted Sarandos
Co-chief executive of Netflix
Said Netflix needs better execution in the US after weak guidance
 Doug Belgrad
Doug Belgrad
Netflix film vice president
Among those laid off in October 2026
 Bela Bajaria
Bela Bajaria
Former chief content officer of Netflix
Left Netflix in October 2026
PR
Peter Rice
Chief content officer of Netflix
Running global content and overseeing film

Organizations Involved

Netflix, Inc.
Netflix, Inc.
Streaming service
Cutting 6% of staff and guiding to weaker fourth-quarter profit

Streaming company cutting about 1,000 jobs, or 6% of staff, after issuing weak fourth-quarter guidance.
Skydance
Skydance
Media company
Combined company formed from Paramount's Warner Bros. purchase

The company created when Paramount completed its $110-billion purchase of Warner Bros. Discovery.
YouTube
YouTube
Video platform
Competitor pulling viewers with free content

Google-owned free video platform that competes with Netflix for viewers' time.

Timeline

2022 October 2026

8 events Latest: October 21st, 2026 · 3 weeks ago
Tap a bar to jump to that date

  1. Co-CEOs face employees at town hall

    Latest Corporate

    Greg Peters and Ted Sarandos took questions from staff a day after the earnings report, addressing the layoffs and the shakeup that put Peter Rice in charge of content.

  2. Netflix reports mixed third-quarter results

    Earnings

    Revenue rose 11.8% to $12.87 billion, but fourth-quarter profit guidance came in below analyst estimates and the company cut its 2026 ad forecast to about $2.7 billion. Shares fell nearly 6% after hours.

  3. Netflix replaces chief content officer

    Corporate

    Bela Bajaria exits as chief content officer. Peter Rice, former Disney and Fox executive, replaces her and also oversees film until a successor to departing film chief Dan Lin is named.

  4. Netflix announces ~1,000 job cuts

    Layoffs

    Co-CEOs Greg Peters and Ted Sarandos tell employees in a memo that Netflix is cutting about 1,000 jobs, 6% of its workforce.

  5. Paramount completes Warner Bros. deal

    Corporate

    Paramount finishes its $110-billion purchase of Warner Bros. Discovery, forming Skydance.

  6. Product division trimmed

    Layoffs

    Netflix cuts jobs in its product division in a smaller round, ahead of the larger October cuts.

  7. Warner Bros. bid fails

    Corporate

    Netflix loses its pursuit of Warner Bros. Discovery's streaming and studio assets to Paramount Skydance.

  8. Netflix's first big post-boom layoffs

    Layoffs

    Netflix cuts about 450 jobs after losing subscribers for the first time in more than a decade.

Scenarios

1

Netflix beats Q3 guidance and calms Wall Street

Possible Resolves by Nov 30, 2026

Discussed by: TheWrap analysts, who described the layoffs as a speed bump, and investors watching the Q3 report

The job cuts land a week before Netflix reports third-quarter earnings, letting leadership show cost discipline. If revenue and subscriber additions hit or beat guidance, shares could recover some of their 25% year-to-date decline. The company says it remains on track for its full-year forecast.

2

Netflix lands a major live-sports rights deal

Possible Resolves by Oct 15, 2027

Discussed by: Wall Street Journal and eMarketer analyst Ross Benes, who note Netflix needs revenue beyond subscriptions

Netflix is investing in live programming and an ad tier to expand beyond subscription fees. A multi-year rights deal for a major sports league would give advertisers a reason to buy and pull in new viewers. That would signal a durable second revenue stream.

3

Subscription growth keeps slowing; ceiling holds

Uncertain Resolves by Feb 28, 2027

Discussed by: Ross Benes of eMarketer, who says Netflix is nearing a subscription ceiling and still lacks a diversified revenue line

If ad-tier growth and live events don't move the needle, Netflix stays reliant on subscriptions that may be nearing saturation in mature markets. Engagement, the time users spend on the platform, has been slowing and is the metric investors watch. Cost cuts would then be a stopgap rather than a fix.

4

Netflix hits its lowered $2.7 billion ad target for 2026

Uncertain Resolves by Jan 31, 2027

Discussed by: Netflix executives, who cut the forecast on the October 20 earnings call

Netflix trimmed its 2026 advertising forecast to about $2.7 billion from $3 billion, saying some ad products rolled out slower than expected. Reaching the lower number would show the ad tier is still adding revenue even as subscriber gains stall in the US.

5

Netflix bids for NBCUniversal after the Comcast spinoff

Uncertain Resolves by End of 2027

Discussed by: Analysts cited by Reuters

After losing Warner Bros. Discovery to Skydance, Netflix could go after other targets, including NBCUniversal once Comcast spins it off, Reuters reported, citing analysts. A deal would give Netflix another studio's film and television library.

Historical Context

2 moments from history that rhyme with this story — and how they unfolded.

2022

Netflix's 2022 subscriber shock (2022)

In 2022 Netflix reported losing subscribers for the first time in more than a decade. The company cut about 450 jobs in two rounds, its largest layoffs at the time, and began building an advertising business.

Then

The layoffs and the shift toward ads marked the end of the streaming boom's fastest growth phase.

Now

Netflix's strategy since has centered on ads, live programming and gaming to find revenue beyond subscriptions.

Why this matters now

This week's cuts follow the same pattern: growth slows, costs are trimmed, and the company hunts for new revenue.

October 2026

Paramount buys Warner Bros. to form Skydance (2026)

Paramount completed a $110-billion purchase of Warner Bros. Discovery, creating the combined company Skydance. Netflix had pursued the same streaming and studio assets earlier in the year and lost.

Then

The deal removed Warner Bros. Discovery from Netflix's reach and left Netflix without a big acquisition to broaden its lineup.

Now

It concentrates the streaming market into fewer, larger players competing on cost and content scale.

Why this matters now

Netflix's layoffs are part of the same industry squeeze: with fewer growth levers, streamers are cutting costs and consolidating.

Sources

(22)
+16
Wall Street Journal BBC Reuters (via Investing.com) Los Angeles Times TheWrap Investopedia Associated Press Vulture Engadget Adweek The Hindu BusinessLine Reuters Variety Deadline NPR Hindustan Times ChosunBiz Wall Street Journal Associated Press Reuters Deadline Associated Press