Netflix Announces Layoffs Affecting Around 6% Employees
Netflix, one of the world's leading video streaming platforms, has announced plans to lay off approximately 6% of its total workforce, or around 1,000 employees. The information was disclosed in an internal memo sent by the company's co-chief executive officers, Ted Sarandos and Greg Peters.
The layoffs will primarily affect the technology, product development, legal and human resources (HR) departments.
However, the company has clarified that it remains committed to its established objectives, including improving service quality and continuing substantial investments in high-impact areas.
According to Netflix's annual report published at the end of last year, the company had 16,000 full-time employees.
Intensifying Competition and Background
Earlier this year, Netflix lost a major bidding war to Paramount Skydance in its attempt to acquire Warner Bros. Discovery's studio and streaming businesses. Alongside this business setback, Netflix—which has long maintained a dominant position in the entertainment market—is now facing intense competition from social media platforms such as YouTube, TikTok and Instagram.
According to data from various market research firms, TikTok is rapidly gaining ground in user engagement, while YouTube surpassed Netflix in average daily video viewing time in 2025.
New Strategies and Future Plans
To retain subscribers and improve service quality, Netflix has recently introduced an ad-supported subscription tier and made substantial investments in live events, sports, gaming and children's programming. The company has also significantly redesigned its mobile app by incorporating artificial intelligence (AI)-powered features, video podcasts and short-form video content.
In 2025, Netflix generated total revenue of $45.2 billion, of which advertising revenue exceeded $1.5 billion.
As competition intensifies across the entertainment industry, it remains to be seen how effective these internal restructuring measures and workforce reduction policies will be in helping Netflix maintain its leading position.
//DBTech/BMT/OR//
