Netflix reportedly prepares 5% workforce cut after 42% share decline

Puck News reported Friday, citing people familiar with the matter, that Netflix is preparing to reduce its workforce by about 5%, with an announcement potentially coming as early as next week. Netflix had about 16,000 full-time employees at the end of last year, implying roughly 800 positions; TheWrap reported that the departments affected are not yet clear.

The reported cuts would mark Netflix’s first major layoffs since 2022, when the company also reduced staff. The timing follows a 42% decline in the shares over the past year, according to the report, although the connection between that decline and the planned workforce reduction has not been established.

The immediate mechanism is operating cost: fewer employees could lower personnel expense, but the effect depends on which teams are affected and how quickly the savings appear. Netflix’s FY2025 revenue was $45.2 billion, up 15.9% year over year, with a 24.3% net margin, so the reported action comes against a business that was still growing revenue and generating a substantial net margin in its latest full-year figures.

The report is attributed to people familiar with the matter, and the timing remains tentative. No department breakdown or formal company announcement has been identified here, leaving the scale of any savings and the operational impact unresolved.

The next concrete marker is the possible announcement as early as next week. Investors will need the final headcount figure, the affected functions and any restructuring charge or savings outlook to assess whether the move is primarily a cost action or signals a broader change in Netflix’s operating priorities.