Netflix cuts about 6% of workforce, citing slower revenue growth

Netflix said it is cutting roughly 6% of its workforce, according to a report that cited a memo Netflix leaders sent to employees. The decision reflects a shift toward cost control as Netflix’s revenue growth has slowed.

The memo described the layoffs as targeting multiple functions rather than a single business unit. Netflix leadership said the reductions will affect employees in product and technology, as well as roles in legal and human resources.

Netflix did not, in the reported account, specify how many employees will be affected in absolute terms or provide a timeline for when the cuts will be completed. It also did not detail the criteria used for selecting roles, beyond describing the affected departments.

The report characterized the changes as part of Netflix’s response to slower top-line growth. Netflix has faced intense competition in streaming and has increasingly emphasized pricing discipline and content profitability as the industry matures.

Netflix’s broader operating challenge is that streaming revenue is highly sensitive to subscription growth, retention, and pricing. When subscriber additions slow, companies often look first at discretionary spending and overhead, including staff in corporate functions and engineering-heavy teams.

In Netflix’s case, the functions mentioned in the report are central to how it builds and operates its service. Product and technology teams support streaming features, recommendation systems, and platform stability, while legal and HR handle compliance obligations and staffing needs. Reducing headcount in those areas can change how quickly new features are developed and how internal processes scale.

Still, the memo report left several questions unanswered. It did not provide details on whether layoffs will be offset by hiring in other areas, whether Netflix will consolidate teams or close facilities, or how severance and internal reassignment will work. It also did not disclose updated financial guidance or quantify the expected cost savings.

Investors and analysts will likely focus on whether Netflix can protect engagement and growth while absorbing workforce reductions. The next key indicates to watch are Netflix’s subsequent quarterly results, any updates on hiring plans, and how management describes cost control versus investment in content and product.