Netflix lays off about 1,000 staff as competition for viewers intensifies

Netflix confirmed to TechCrunch that it is cutting about 6% of its employee base, or close to 1,000 staff, with most of the cuts hitting its product, technology, legal, and human resources departments. The company said it will “continue to invest aggressively in high impact areas” to improve its service, and that it remains on track to deliver its full-year forecast. Netflix had 16,000 full-time employees as of the end of last year, according to its annual regulatory filing.

The Wall Street Journal first reported the layoffs, citing an internal memo sent to staff. The Journal cited co-CEOs Ted Sarandos and Greg Peters writing, “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.”

The cuts come after Netflix lost a protracted bidding war for Warner Bros. Discovery’s streaming and studio businesses to Paramount Skydance earlier this year. Netflix had ostensibly seen significant potential in those assets, which include Warner Bros.’ studios, HBO, streaming platforms, games, and TV networks such as CNN and HGTV.

Long the dominant TV app, Netflix has in recent years faced intensifying competition from YouTube, TikTok, Instagram, and other social apps for user attention. According to reports from various market research firms, TikTok is catching up to Netflix on user engagement, and YouTube is said to have surpassed Netflix in average daily viewing in 2025. In response, Netflix has raised prices, expanded its ad-supported tier, and invested in live events, sports, gaming, and children’s programming to keep users engaged. It has also bet on AI-supported features, gaming, and video podcasts, dabbled in short-form video, and redesigned its mobile app to compete with social platforms for attention. In 2025, Netflix reported revenue of $45.2 billion, with ad revenue rising to over $1.5 billion.

Why it matters

Losing the Warner Bros. Discovery deal and facing eroding viewing share to social apps puts pressure on Netflix to cut costs even as it keeps investing in the new formats — live events, gaming, AI features — it hopes will hold viewer attention.