Netflix lays off around 1,000 employees, with cuts affecting games division

• Netflix reported $45.2bn in revenue for 2025, up 16%.
• The company had around 16,000 full-time employees at the end of 2025.
• Netflix expects 2026 revenue of $51 billion to $51.4bn.
• The company is scheduled to report third-quarter results on October 20th.

Netflix has revealed plans to lay off around 1,000 employees, representing 6% of its workforce in its biggest round of job cuts to date. 

As reported by Variety, the reductions will affect product, technology, legal and HR teams.

The company's games division will also be impacted, as evidenced by Licia Prehn, who worked in HR at Next Games. Prehn confirmed on LinkedIn that she is departing from the company and is seeking new roles.

"You all likely saw the news from Netflix yesterday. As a result, I will be leaving the company. I have truly loved working for Next Games and Netflix, and getting to work with such incredible people every day," she posted.

Netflix acquired the Finnish developer in 2022. The streaming giant has not said how many Next Games staff will be affected by the latest cuts.

Cuts despite strong financial growth

Netflix co-CEOs Ted Sarandos and Greg Peters announced the cuts in an email to staff, citing organisational changes and the need to focus resources on priority areas. 

“Team - we wanted to share that we are making a number of organisational changes and, as a result, we’ll be letting go of roughly 6% of our colleagues, with the greatest impact to our product, tech, legal and HR teams," the co-CEOs wrote. 

“Decisions like these are never easy, and we don’t take them lightly. Our top priority today is to support those who are leaving Netflix. The process will vary somewhat by country, but leaders will be connecting with impacted employees soon."

The cuts come despite Netflix reporting strong financial growth. The company generated $45.2 billion in revenue in 2025, up 16% year-over-year, while net income rose 26% to $11bn.

Netflix had around 16,000 full-time employees at the end of 2025. Its last major round of layoffs came in 2022, when it cut around 450 jobs following a loss of 200,000 subscribers in the first quarter. 

The company also made smaller cuts earlier in 2026, including within its global product team. The streaming giant expects 2026 revenue of between $51bn and $51.4bn as it readies its third-quarter 2026 financial results for October 20th.