Islamabad, 16 October 2026 (Ghufran): Netflix is set to lay off approximately 1,000 employees, representing around six per cent of its workforce, in its largest round of job cuts since 2022 as the streaming giant faces intensifying competition from YouTube, TikTok and traditional media rivals. According to an internal memo reviewed by Reuters, the majority of the layoffs will affect the company’s product, technology, legal and human resources departments. Co-chief executives Greg Peters and Ted Sarandos informed employees on Wednesday that the company needed to remain disciplined in allocating its workforce and resources to fulfil its mission of entertaining audiences worldwide. They maintained that Netflix’s business remained strong and growing and that the company was on track to meet its full-year financial forecast. Netflix shares, which have fallen approximately 25 per cent so far this year, rose 0.7 per cent on Wednesday. The company had around 16,000 employees at the end of last year. The latest cuts come amid growing investor concerns about Netflix’s ability to sustain the rapid growth that has transformed the US media industry and challenged traditional cable television businesses.

User engagement, measured by the amount of time viewers spend on the platform, has become a key concern as YouTube and TikTok attract audiences with free, user-generated content and benefit from lower content costs. Netflix’s unsuccessful attempt earlier this year to acquire Warner Bros. Discovery’s streaming and studio assets also raised questions about its long-term strategy. Paramount completed its reported $110 billion acquisition of Warner Bros. earlier this month, bringing the company under Skydance. Industry analysts say Netflix remains heavily dependent on subscription revenue and may face difficulties sustaining growth without developing additional income sources. Ross Benes, a senior analyst at eMarketer, said the company had yet to establish another major revenue stream capable of significantly diversifying its business. In response to changing market conditions, Netflix has been expanding beyond subscriptions through advertising-supported plans, live programming and gaming. The company’s previous major layoffs took place in 2022, when it eliminated approximately 450 positions in two rounds after losing subscribers for the first time in more than a decade. The latest job cuts highlight the mounting pressure on streaming platforms to control costs, attract viewers and develop new sources of revenue in an increasingly competitive entertainment market.