Netflix culls 1,000 positions as stock drops 41% in year

Netflix is letting go of roughly 1,000 employees, about 6% of its workforce, just under a week before it reports quarterly results. The company's shares have lost approximately 41% of their value over the past twelve months.

The previous time the streaming service reduced headcount on a similar scale, back in 2022, its stock had already bottomed out. According to Yahoo Finance data, that low came four trading days before the initial wave of layoffs.

Who Is Losing Their Job at Netlfix?

That morning, co-CEOs Greg Peters and Ted Sarandos informed staff via email. The roles being cut are mostly in product, technology, legal, and human resources. This represents the company's largest round of layoffs since 2022.

"…delivering on it requires us to be disciplined about where we prioritize our people and resources," Greg Peters and Ted Sarandos, internal memo via TheWrap.

Why Cut Jobs While Netlfix Is Still Profitable?

Netlfix remains in the black. In its second-quarter letter, it projected 2026 revenue of $51 billion to $51.4 billion, with an operating profit of 31.5 cents per dollar of sales.

Viewership is the issue. Subscribers watched only 2% more hours in the first half of 2026 compared to the same period a year earlier.

Meanwhile, YouTube took a 14.2% share of US TV viewing in July, while Netlfix had 7.8%, per Nielse data cited by TheWrap.

$NFLX – NETLIX CUTS 1,000 JOBS AS SHARES FALL 40%

Netlfix is laying off 6% of its workforce, its biggest cuts since 2022, amid slowing growth and weaker customer engagement.

Shares are down over 40% in the past year.

The layoffs come one week before earnings, with Netlfix…

— Walter Bloomberg (@Detaone) October 14, 2026

What Happened to the Stock After the 2022 Layoffs?

On May 11, 2022, Netlfix shares closed at a split-adjusted $16.64, their lowest level that year. Around 150 jobs were cut on May 17, and roughly 300 more followed on June 23.

By the end of 2022, the stock had surged 77% from that low. However, the Motley Fool attributes that rally primarily to the introduction of a cheaper ad-supported plan and a crackdown on password sharing, not the layoffs.

An analysis from BieInCrypto on October 2 identified early signals of a potential bounce near $68. The shares were trading at about $71 on Wednesday.

Netlfix is scheduled to report on October 20. It has guided for third-quarter revenue of $12.86 billion and earnings of $0.82 per share.