Netflix (NFLX) is planning to cut about 5% of its workforce, with an announcement possibly coming as early as next week, Reuters reported on Friday, citing Puck News. Netflix declined to comment, so these are reported plans, not confirmed layoffs.
Netflix ended 2025 with about 16,000 full-time employees, which puts the cut at roughly 800 jobs. That would be its biggest reduction since 2022. This time, though, the company is cutting from a position of strength.
What’s Been Reported
- Size: about 5% of global staff (one outlet puts it near 850; Netflix hasn’t confirmed either figure)
- Timing: an internal announcement as early as next week
- Backdrop: Reuters points to a tougher market, with Alphabet’s (GOOGL) YouTube taking a bigger share of viewing and ad spending as media rivals consolidate
- Unchanged: Netflix’s full-year revenue outlook of $51.0 billion to $51.4 billion and its 31.5% operating margin target
Netflix Isn’t Cutting From 2022’s Position
In 2022, Netflix let go of about 450 people across two rounds after losing subscribers, from a workforce of roughly 11,000. Operating margin fell to 17.8% that year.
The picture since then runs the other way. Margin rose every year to 29.5% in 2025 and 29.7% on an LTM basis, while second-quarter revenue grew 13%. Full-time headcount rose 25%, from about 12,800 at the end of 2022 to 16,000 at the end of 2025, so the reported cuts would follow several years of workforce expansion.
Management’s 31.5% full-year operating margin target calls for another step up. The reported cuts could support that goal, but Netflix hasn’t confirmed their purpose or financial impact.
The Street on Netflix Stock
Netflix stock closed at about $72 on Thursday, down about 40% since the end of September 2025. The mean analyst target of $93 sits about 29% above that close, though it has fallen from $136 over the same span. Ratings still lean bullish, with 28 buys, 7 outperforms, 15 holds and 1 sell.
Netflix’s October 20 third-quarter report is the next scheduled earnings update, when investors can look for commentary on the reported cuts and whether the 31.5% full-year operating margin forecast still holds.
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