Netflix is laying off around 1,000 employees — 6% of its workforce — in its biggest round of job cuts to date, with the reductions reaching product, technology, legal, HR teams and the company's games division.

Variety first reported the scope of the cuts. The games impact is already visible on the ground: Licia Prehn, who worked in HR at Next Games, confirmed her departure on LinkedIn and is seeking new roles.

"You all likely saw the news from Netflix yesterday. As a result, I will be leaving the company. I have truly loved working for Next Games and Netflix, and getting to work with such incredible people every day," Prehn wrote.

Netflix acquired the Finnish developer in 2022. It hasn't said how many Next Games staff the latest round will affect.

What did the co-CEOs say?

Co-CEOs Ted Sarandos and Greg Peters announced the cuts in an email to staff, citing organisational changes and a need to focus resources on priority areas.

"Team - we wanted to share that we are making a number of organisational changes and, as a result, we'll be letting go of roughly 6% of our colleagues, with the greatest impact to our product, tech, legal and HR teams," the co-CEOs wrote.

"Decisions like these are never easy, and we don't take them lightly. Our top priority today is to support those who are leaving Netflix. The process will vary somewhat by country, but leaders will be connecting with impacted employees soon."

Why cut now?

The timing is the odd part. Netflix generated $45.2 billion in revenue in 2025, up 16% year-over-year, while net income rose 26% to $11 billion. The company had around 16,000 full-time employees at the end of 2025.

This isn't a distressed business trimming fat. It's a profitable one reallocating.

The precedent is instructive. Netflix's last major layoffs came in 2022, when it cut around 450 jobs after losing 200,000 subscribers in the first quarter. The company also made smaller reductions earlier in 2026, including within its global product team.

What changes for games teams?

For the games division, the signal is mixed. Netflix hasn't quantified the impact on Next Games or its broader interactive arm, but HR cuts at an acquired studio rarely stay isolated. Studios integrated into large platform parents typically feel reductions first through support functions — exactly the departments Sarandos and Peters named.

The company expects 2026 revenue of between $51 billion and $51.4 billion. Whether games remain a priority area under that reallocation should become clearer when Netflix reports third-quarter results on October 20th.