Netflix, Inc. (NASDAQ: NFLX) is preparing to lay off approximately 5% of its global workforce as early as next week, according to a report by media newsletter Puck.
The planned reductions would affect roughly 800 employees, based on the company’s most recent regulatory filings showing a global headcount of around 16,000 full-time staff members.
Approximately 68% of Netflix’s total workforce is located in the United States, meaning the cuts would be felt significantly on domestic operations as well as internationally.
A representative for the streaming giant declined to comment on the reported job reductions, offering no clarification on timing or which departments would be impacted.
Netflix shares have fallen about 42% since the company pursued an acquisition of rival media titan Warner Bros. Discovery Inc., a move that drew widespread skepticism from Wall Street investors.
Analysts viewed the buyout effort as a sharp departure from Netflix’s historical strategy of growing organically rather than pursuing major corporate consolidation deals.
The acquisition bid ultimately came to nothing after Warner Bros. Discovery was acquired by the newly rebranded Skydance Corp., leaving Netflix without the asset it had sought.
Beyond the failed deal, Netflix faces mounting operational pressure, with platform engagement growing by just 2% in the most recent reporting period and its Emmy Awards haul falling to a decade low.
At the Bloomberg Screen Time conference in Los Angeles, Co-Chief Executive Officer Ted Sarandos acknowledged the slowdown, admitting the platform’s current trajectory is behind executive expectations.
The company has deployed several monetization strategies in recent years, including launching an ad-supported subscription tier, cracking down on password sharing, and raising subscription prices, yet top-line sales growth has continued to cool.
To reignite viewer engagement, Netflix has expanded into live event broadcasting, video gaming, and podcasts, while also licensing third-party catalog content through an agreement with French broadcaster TF1.
Retail sentiment on Stocktwits for NFLX was tracked as “bullish” with “high” message volumes, even as the stock has shed approximately 25% of its value year-to-date.
Financial analysts and investors will be watching closely when Netflix reports its upcoming quarterly results on October 20, with the workforce restructuring likely to factor heavily into the company’s forward guidance discussion.
