Netflix prepares to cut 5% of staff ahead of earnings report
Netflix is gearing up for its largest staff reduction since 2022. According to Puck, the company plans to cut about 5% of its workforce — roughly 800 people. The announcement could come next week, less than two weeks before Netflix reports third-quarter results. The streaming giant is under pressure: YouTube now accounts for 14.2% of U.S. TV viewing time, while Netflix holds just 7.8%. YouTube is even paying creators to keep their content on its platform. Meanwhile, media giants are consolidating, squeezing Netflix out of the market. • **Advertising business**: revenue is expected to double to $3 billion this year • **New ventures**: live events and video games beyond subscriptions • **AI transformation**: the company is embedding AI skills across every department
AI-processed from TNW; edited by Hamidun News
Cuts amid fierce competition
Netflix is preparing to announce a cut of roughly 5% of its staff — about 800 people. It would be the company's largest layoff since 2022, when it cut hundreds of employees after losing subscribers for the first time in its history. As of the end of last year, Netflix had about 16,000 full-time employees. The announcement could come as early as next week, less than two weeks before the company reports third-quarter results on October 20.
According to Puck, Netflix has not yet disclosed which teams will be affected or whether the layoffs are tied to restructuring or cost-cutting. The news comes at a difficult time: three months ago, a soft third-quarter forecast sent Netflix shares down 9%.
YouTube is squeezing Netflix out
The pressure on Netflix isn't coming from its usual rivals — it's coming from YouTube. Netflix is still growing, but it faces intense competition: media giants are merging, and YouTube keeps grabbing a larger share of viewing time and ad dollars.
The numbers tell the story: YouTube accounts for 14.2% of U.S. TV viewing time, compared with just 7.8% for Netflix. YouTube has even started paying creators directly to keep their shows on its platform instead of migrating to Netflix — a strategy that shows YouTube is now willing to pay for content that once flowed automatically to Netflix.
Diversifying beyond subscriptions
In response to its shrinking market share, Netflix has expanded well beyond the subscription model:
• Advertising — ad revenue is expected to double this year to roughly $3 billion • Live events — live broadcasts and special events • Video games — a segment becoming increasingly strategic
At the same time, Netflix is undergoing a deep company-wide transformation. The streaming service is embedding AI skills into employees' daily work across every department, which means retooling teams and adapting to new competitive realities.
What investors will hear
Netflix co-CEOs Greg Peters and Ted Sarandos will discuss third-quarter results in a video interview on October 20. That interview will be investors' first chance to hear from leadership about the planned layoffs, if they are officially confirmed. So far, Netflix hasn't disclosed the scale or details of the restructuring, leaving the market in the dark ahead of a critical earnings announcement.
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Key Questions Answered
What are the key details on Cuts amid fierce competition?
Netflix is preparing to announce a cut of roughly 5% of its staff — about 800 people. It would be the company's largest layoff since 2022, when it cut hundreds of employees after losing subscribers for the first time in its history. As of the end of last year, Netflix had about 16,000 full-time employees. The announcement could come as early as next week, less than two weeks before the company reports third-quarter results on October 20. According to Puck, Netflix has not yet disclosed which teams will be affected or whether the layoffs are tied to restructuring or cost-cut
What are the key details on YouTube is squeezing Netflix out?
The pressure on Netflix isn't coming from its usual rivals — it's coming from YouTube. Netflix is still growing, but it faces intense competition: media giants are merging, and YouTube keeps grabbing a larger share of viewing time and ad dollars. The numbers tell the story: YouTube accounts for 14.2% of U.S. TV viewing time, compared with just 7.8% for Netflix. YouTube has even started paying creators directly to keep their shows on its platform instead of migrating to Netflix — a strategy that shows YouTube is now willing to pay for content that once flowed automatically t
What are the key details on Diversifying beyond subscriptions?
In response to its shrinking market share, Netflix has expanded well beyond the subscription model: Advertising — ad revenue is expected to double this year to roughly $3 billion Live events — live broadcasts and special events Video games — a segment becoming increasingly strategic At the same time, Netflix is undergoing a deep company-wide transformation. The streaming service is embedding AI skills into employees' daily work across every department, which means retooling teams and adapting to new competitive realities.
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