Netflix May Lay Off 5% of Employees as Early as Next Week
Netflix is readying to trim roughly 5% of its workforce as soon as next week, according to reports, as revenue growth decelerates, competition in streaming heats up and investors get jittery. The corporation had about 16,000 full-time employees at the end of last year.
As early as next week, Netflix Inc. plans to let off about 5% of its employees. The streaming giant's official would not comment on the rumoured layoffs. According to a regulatory filing, Netflix had around 16,000 full-time employees at the end of last year, with 68% of that staff based in the US.
Since Netflix started courting Warner Bros. Discovery Inc., the stock price has dropped by over 42%. According to Bloomberg, investors saw Netflix's planned acquisition of the competing entertainment company as an indication of weakness because of the streaming giant's past unwillingness to pursue major acquisitions. This week, Skydance Corp. acquired Warner Bros. Discovery.
Challenging Times for Netflix
Concerns over Netflix's capacity to maintain viewer engagement have also been voiced by investors. During its most recent reporting period, the streaming platform saw a 2% increase in engagement and a decline in Emmy Award wins to its lowest level in a decade. Several new revenue-generating initiatives have been implemented by Netflix in recent years. Some of these steps include increasing subscription prices, limiting password sharing, and introducing a cheaper, ad-supported subscription plan.
Having said that, quarterly revenue growth for the corporation has been slowing. When asked about Netflix's slow expansion, co-CEO Ted Sarandos admitted it last week at the Bloomberg Screentime conference in Los Angeles. The business has been diversifying its products to include live events, podcasts, and video games in an effort to draw in and keep customers. It has also included shows from the TF1 network in France.
Major Tech Firms Now Opting for Layoffs
In 2026, IT layoffs are accelerating globally. The first quarter alone saw over 80,000 job cuts, and the overall number of jobs lost is expected to surpass 3 lakh. Oracle, Amazon, and Meta are reportedly at the forefront of these layoffs. In an effort to lower payroll expenses, software giant Oracle has started a new round of layoffs. Meanwhile, the tech company is spending tens of billions to increase data centre capacity and keep up with the soaring demand for AI computing.
This is the second wave of layoffs this year for Oracle; the first wave occurred earlier in the year. The number of employees at Oracle fell by almost 21,000, or 13%, in the fiscal year ending May 31, 2026, according to the company's filings. In 2022, when growth was stalling and subscribers were leaving, Netflix laid off hundreds of workers. According to reports, Netflix is cutting jobs in response to rising competition in the streaming market, which is caused by media organisations merging and YouTube gaining a larger audience and advertising budget.
