Netflix (NFLX) is cutting about 6% of its workforce, or roughly 1,000 jobs, its deepest reduction since 2022. The cuts announced on Wednesday, October 14 land mostly on product, technology, legal and HR teams, and they’re larger than the 5% Puck reported on October 9.
Co-CEOs Ted Sarandos and Greg Peters told staff that “we remain on track to deliver our full-year forecast,” according to CBS News. The stock, trading near $70, is down about 43% over the past 12 months.
Netflix’s Growth Is Cooling
Revenue growth peaked at 17.61% in the fourth quarter of 2025, then slowed to 16.19% in the first quarter of 2026 and 13.37% in the second.
The forecast Netflix is defending already assumes more slowing. The company guides to $51.0 billion to $51.4 billion in 2026 revenue alongside a 31.5% operating margin. With $24.81 billion booked in the first half, hitting the range means second-half growth of about 11% to 13%, below the second quarter’s pace.
The layoffs could help protect the margin as revenue growth slows, and they come about a week before Netflix reports its next quarter.
The October 20 Number for Netflix Stock
Netflix reports third-quarter results after the close on Tuesday, October 20. Its July outlook already calls for $12.86 billion in revenue, up 11.7%, so growth near 13% would be a clear beat and growth around 11% a modest miss. The bigger tell is the fourth-quarter guide. If the third quarter lands on forecast, Netflix needs roughly 11% to 14% growth in the final quarter to stay inside its $51.0 billion to $51.4 billion range.
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