Netflix is cutting about 6% of its workforce, or nearly 1,000 staff, amid intensifying competition for user attention. The cuts are hitting product, tech, legal, and human resources departments. Co-CEOs Ted Sarandos and Greg Peters say the company will continue to invest in impactful areas, as it seeks to deliver its full-year forecast.

The streaming giant, once the dominant TV app, now faces stiff competition from social apps like TikTok and YouTube. Reports suggest that TikTok is catching up to Netflix in user engagement, while YouTube has surpassed it in average daily viewing.

Netflix has been trying to extract more value from its subscribers by raising prices, expanding its ad-supported tier, and investing in live events, sports, gaming, and children's programming. It has also bet on AI-supported features, gaming, and video podcasts, and has dabbled in short-form video content alongside a redesign of its mobile app.

In 2025, Netflix reported revenue of $45.2 billion, with ad revenue rising to over $1.5 billion. The company lost out to Paramount Skydance in a bid for Warner Bros. Discovery's streaming and studio businesses earlier this year, despite seeing great potential in the assets.