Netflix Reportedly Plans About 800 Job Cuts Despite Strong Margins
Netflix is reportedly preparing to cut roughly 5% of its workforce, or about 800 roles, with an announcement possibly next week. The reduction would be its largest since 2022, but it comes as operating margins approach 30% and the revenue outlook remains unchanged. Netflix has not confirmed the plans, and its next earnings report is scheduled for October 20.
Netflix reportedly may trim roughly 5% of staff, around 800 positions, with an internal notice possibly next week. The company ended 2025 with about 16,000 full-time workers, making this its largest reduction since 2022, though Netflix has not confirmed the plans.
By contrast, 2022 cuts totaled about 450 across two rounds after subscriber losses, when margin was 17.8%. Margins later climbed to 29.5% in 2025 and 29.7% on an LTM basis, while Q2 revenue rose 13% and headcount expanded 25% from roughly 12,800 at 2022’s end. Full-year revenue guidance and the 31.5% margin target remain unchanged.
If confirmed, the reported cuts could affect roughly 800 workers and their households, adding uncertainty in a media sector already adjusting to streaming competition and consolidation. It may also signal that even profitable firms are prioritizing margin targets over headcount growth, which could influence hiring practices and worker expectations across entertainment and technology. Investors may weigh the move against unchanged revenue and margin guidance, while local economies tied to affected offices could feel modest ripple effects.