Netflix is reportedly preparing a significant restructuring that could affect about 5% of its workforce, with the potential layoffs set to be announced as early as next week.

Puck News reported the planned cuts, citing anonymous sources who said the restructuring “will impact” roughly 5% of staffers. Netflix declined to comment, and it remains unclear which departments could bear the largest share of the reductions.

The reported percentage would translate into approximately 800 jobs based on Netflix’s stated workforce at the end of 2025. The company said it employed about 16,000 full-time workers at that point.

A majority of those employees were based in the U.S. and Canada. As of December, approximately 10,900 workers — or about 68% of Netflix’s workforce — were located across those two countries.

Netflix’s Recent History of Cutbacks

If the reported plan moves forward, it would mark Netflix’s latest major workforce reduction following a series of cuts over the past several years.

In 2022, the streaming company laid off about 450 employees after reporting a net decline of 200,000 subscribers during the first quarter. That marked Netflix’s first subscriber drop of its kind in more than a decade.

Smaller cutbacks have followed. Earlier in 2026, Netflix let go of several dozen employees from its global product team.

The latest report arrives as company leadership has publicly discussed a desire to accelerate Netflix’s growth. At last month’s Bloomberg Screentime conference in Los Angeles, co-CEO Ted Sarandos pointed to double-digit second-quarter revenue gains in every geographical region while making clear that he wanted the business to move more quickly.

“We want to keep growing it faster,” Sarandos said.

He also addressed a slowdown in user engagement, which increased 2% year over year during the first half of 2026.

“Yes, overall, we’re not growing as fast as I want us to, and we’re working on making that move faster,” Sarandos said.

The co-CEO noted that Netflix’s expansion into live programming has created a gap between spending and viewing. According to Sarandos, live events account for about 5% of the company’s content budget but generate approximately 1% of watching on the service.

Netflix’s second-quarter earnings matched Wall Street forecasts. However, the company issued third-quarter revenue guidance that fell below analyst expectations, sending its stock price lower.

ShowBiz Take

The reported restructuring is notable because it comes as Netflix is describing a business that continues to grow, including double-digit revenue gains across every geographical region in the second quarter. At the same time, Sarandos has acknowledged that overall growth is not moving as quickly as he would like and that engagement gains have slowed.

That combination gives the possible layoffs broader significance. The report does not identify the divisions that may be affected, but a 5% reduction would be substantial when measured against Netflix’s 16,000 full-time employees and its earlier rounds of cuts.

The live-programming figures also offer important context for the company’s current position. Netflix is directing about 5% of its content budget toward live events while those programs account for about 1% of total viewing, according to Sarandos. His comments indicate that the company is evaluating growth while also navigating initiatives that currently create what he called “headwind” for engagement.

What Happens Next?

The first question is whether Netflix will formally announce the reported restructuring as early as next week and provide details about which teams or regions could be affected. For now, the company has not publicly confirmed the cuts.

Netflix is also scheduled to report its third-quarter 2026 earnings on Tuesday, Oct. 20, after the market closes. That report will follow the company’s below-expectations third-quarter revenue guidance and could provide another key update on its financial performance as questions over the reported layoffs continue.