Netflix could lay off around 850 employees amid declining engagement
What's the story
Netflix is planning to lay off around 850 employees as part of a restructuring effort, according to Puck News. The move comes amid pressure on its stock and a decline in audience engagement. The company has not officially confirmed the job cuts yet, but if they go through, it would be among Netflix's more significant workforce reductions in recent years. The news could be announced as soon as next week.
Information
Job cuts to affect nearly 5% of global workforce
The proposed layoffs would affect nearly 5% of Netflix's global workforce, which is roughly 17,000 employees strong, amounting to nearly 850 job cuts. The restructuring comes as Netflix faces investor pressure to keep audience engagement high and maintain confidence in its business outlook.
Strategy concerns
Co-CEOs under pressure ahead of earnings report
The impending layoffs come as Netflix's growth strategy and business performance are under scrutiny.
The company's earnings report, due on October 20, will likely highlight how co-CEOs Ted Sarandos and Greg Peters intend to revive growth and reassure investors.
Notably, Netflix has always focused on building its business rather than pursuing expensive acquisitions.
Tech investment
Netflix's restructuring amid AI filmmaking acquisition
The restructuring comes as Netflix continues to invest in technology that could change how films and television shows are made.
In March 2026, the streaming company acquired InterPositive, an AI filmmaking start-up founded by actor and filmmaker Ben Affleck.
According to Bloomberg, the deal could have been worth as much as $600 million, although the actual cash payment was lower.
AI tools
InterPositive's AI tools modify existing footage, not create new content
InterPositive has developed AI tools that allow filmmakers to modify existing footage.
These can help with tasks such as removing unwanted objects from a scene or adjusting backgrounds during post-production.
The technology is designed to work with footage from a film that has already been shot, rather than independently generating an entire movie.