Netflix is laying off about 1,000 employees, roughly 6% of its staff, six days before it reports quarterly earnings. Its shares have lost about 41% of their value over the past year.

The last time Netflix cut jobs on this scale, in 2022, the stock had already hit its low. That bottom came four trading days before the first round of layoffs, according to Yahoo Finance price data.

Netflix Stock Performance. Source: Yahoo Finance

Who Is Losing Their Job at Netflix?

Co-CEOs Greg Peters and Ted Sarandos told staff by email that morning. Most of the roles are in product, technology, legal, and human resources. It is the company’s largest layoff round since 2022.

“…delivering on it requires us to be disciplined about where we prioritize our people and resources,” Greg Peters and Ted Sarandos, internal memo via TheWrap.

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Why Cut Jobs While Netflix Is Still Profitable?

Netflix is not losing money. Its second-quarter letter projected 2026 revenue of $51 billion to $51.4 billion, keeping 31.5 cents of every sales dollar as operating profit.

Viewing is the problem. Members watched just 2% more hours in the first half of 2026 than a year earlier.

Meanwhile, YouTube took 14.2% of US TV viewing in July, against 7.8% for Netflix, according to Nielsen data cited by TheWrap.

What Happened to the Stock After the 2022 Layoffs?

Netflix shares closed at a split-adjusted $16.64 on May 11, 2022, their lowest point that year. About 150 jobs went on May 17, and roughly 300 more on June 23.

By the end of 2022, the stock had climbed 77% from that low. However, the Motley Fool credits that recovery mainly to a cheaper plan with ads and a crackdown on password sharing, not the job cuts.

On October 2, BeInCrypto’s Netflix stock analysis flagged early signs of a possible bounce near $68. The shares traded around $71 on Wednesday.

Netflix reports on October 20. It has guided for third-quarter revenue of $12.86 billion and earnings of $0.82 per share, the profit attributed to each share of stock.

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