Netflix lays off a thousand employees despite billions in profits

Netflix has announced the largest layoffs in its history. About 1,000 employees, or 6.1% of its total workforce, will be out of work. The reorganization will hit product development, technology, human resources, and legal departments the hardest.

The decision was announced to employees in an internal memo by CEOs Ted Sarandos and Greg Peters, who explained that the company wanted to allocate resources more efficiently and focus on areas with the greatest potential for growth. They also stressed that Netflix remains committed to investing in new services and innovation.

The layoffs come despite the company still delivering strong financial results. It posted $45.2 billion in revenue and $11 billion in net income in 2025. The second quarter of 2026 was also a success, with revenue reaching $12.56 billion and profit reaching $3.4 billion.

Advertising is becoming a significant source of growth. Revenue from this segment is expected to more than double to $1.5 billion by 2025. Netflix is also investing more in live streaming, sports content, and video games.

Despite its profitability, the company is feeling the pressure of increasingly fierce competition from Disney, Amazon and YouTube, among others. Netflix has already laid off about 450 employees in two waves in 2022.