Netflix Reportedly Planning to Cut 5% of Its Staff Amid Rising Costs and Slowing Revenue Growth
Netflix is reportedly planning a restructuring that could result in the layoff of approximately 5% of its staff, or around 800 employees. This potential move comes as Netflix faces rising non-content costs outpacing revenue growth. The company's combined sales, marketing, technology development, and administrative expenses increased by 18% year-over-year to $2.3 billion in Q2 2026, while revenue grew only 13%. Technology-related spending alone rose 22%, driven largely by personnel costs. This is not the first time Netflix has resorted to layoffs; it cut around 450 jobs across two rounds in 2022. The initial round occurred just four trading days after its stock hit a low point during that period, though the recovery was attributed more to new revenue streams like ad-supported plans and account-sharing fees than cost cuts alone. Netflix is still targeting an operating margin of 31.5% for 2026 but faces slowing growth in both membership and revenue. While layoffs may not significantly impact content costs—the company's largest expense—they could help align other operational expenses with the slower pace of revenue expansion.
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Topics: cost management layoffs Netflix restructuring