Key facts
- Netflix cut about 1,000 employees, 6% of its workforce.
- Shares are down 42% in the last 12 months.
- Global viewing hours grew 2% year-over-year to 97 billion in the first half of 2026.
- YouTube's US TV viewership share was 14.2% in July, compared to Netflix's 7.8%.
- Netflix made an $82.7 billion bid for Warner Bros. assets.
- Netflix secured live rights to the Women's World Cup in 2027 and 2031.
Netflix is facing a significant slowdown in growth, leading to substantial layoffs and a decline in its stock value. The company cut approximately 1,000 employees, representing 6% of its workforce, as viewership growth decelerates amid increasing competition from free streaming services and social media platforms. Netflix's shares have fallen 42% over the past year, and its all-time high was nearly halved last summer.
Co-CEOs Ted Sarandos and Greg Peters acknowledged the need for disciplined resource allocation, though they maintain the company is on track to meet its financial goals. Analysts point to slowing engagement growth, the need for new breakout hits following the conclusion of "Stranger Things," and the rise of free competitors like YouTube, which now holds a larger share of US TV viewership than Netflix.
Adding to investor concerns was Netflix's abandoned $82.7 billion bid for Warner Bros. assets, which some interpreted as a sign of leadership running out of growth ideas. Initiatives like games and podcasts have yet to become significant revenue drivers, and the high cost of sports rights presents another challenge, despite their potential to boost subscriptions and advertising revenue.