Netflix is reportedly preparing to lay off approximately 5% of its workforce, with hundreds of employees potentially losing their jobs as soon as next week.

The planned cuts could affect up to 800 of the company's roughly 16,000 employees, according to Reuters, citing a report from Puck. If carried out as described, the layoffs would mark Netflix's largest round of job cuts since 2022, when the company eliminated hundreds of positions amid slowing growth and concerns about its subscriber base.

The reported reductions come as Netflix faces a more crowded streaming market, with competitors offering viewers an expanding range of entertainment options. YouTube has also continued to capture a larger share of television viewing, adding pressure on traditional streaming platforms to hold audiences' attention.

Despite posting strong financial results, Netflix has signaled that its growth has not met expectations. The company reported $12.56 billion in second-quarter revenue, a 13% increase from the same period in 2025, along with $3.4 billion in net income and an operating margin of 33.4%.

However, Netflix lowered its full-year 2026 revenue forecast to between $51 billion and $51.4 billion. The company also projected approximately $3 billion in advertising revenue for the year. Its stock fell more than 8% following the release of its financial report.

Netflix co-CEO Ted Sarandos acknowledged the company's growth challenges earlier this month as its stock faced pressure.

“Overall, we’re not growing as fast as I want us to, and we’re working on making that move faster,” Sarandos said at Bloomberg's 2026 Screentime event.

Sarandos also emphasized that Netflix remains focused on professionally produced entertainment rather than user-generated content, distinguishing its business model from platforms such as YouTube.

The company has been pursuing several strategies to strengthen its position, including expanding into gaming, live programming and advertising. Those efforts reflect a broader push to attract viewers and generate additional revenue as competition for audiences intensifies.

The reported layoffs would signal another round of cost-cutting for a company that has become one of the most influential names in streaming. While Netflix remains profitable and continues to grow revenue, its revised forecast and leadership's public comments point to mounting pressure to maintain momentum in an increasingly competitive entertainment industry.