Netflix may cut 850 jobs next week amid restructuring

Netflix is reportedly preparing to cut around 850 jobs as the streaming giant looks to reorganise its business amid pressure on its stock and slowing growth in audience engagement. The layoffs could be announced as early as next week, according to a report by Puck News.The proposed cuts could affect about 5 percent of Netflix’s global workforce of around 17,000 employees, amounting to approximately 850 jobs. The company has not publicly confirmed the reported job reductions yet. India Today Tech has reached out to Netflix and will update the article once we receive any statement from the company.If carried out, the cuts would be among the company's more significant workforce reductions in recent years, coming as it faces questions about its growth strategy and the performance of its business.Netflix has periodically reorganised its workforce, but its last major publicly reported round of layoffs took place in 2022, when the company was reportedly struggling with subscriber losses and slower revenue growth. What is the problem?The reported layoffs come at a time when Netflix is facing pressure from investors to sustain audience engagement and maintain confidence in its business outlook. According to Puck News, Netflix's stock has been under pressure, with viewer engagement slowing and its bid for Warner Bros falling through.The company's earnings report, scheduled for October 20, is expected to draw attention to how co-chief executives Ted Sarandos and Greg Peters plan to revive growth and reassure investors. Netflix has traditionally focused on building its business rather than pursuing expensive acquisitions. Its unsuccessful bid for Warner Bros. Discovery, valued at around $72 billion, was a major attempt to expand through a deal.But Netflix spent up to $600 million on AI filmmaking startupThe reported restructuring comes as Netflix continues to invest in technology that could change how films and television shows are made. In March 2026, the streaming company acquired InterPositive, an AI filmmaking startup founded by actor and filmmaker Ben Affleck.According to Bloomberg, the deal could be worth as much as $600 million, although the actual cash payment was lower. The startup's owners could receive additional money if the business meets certain performance targets.InterPositive has developed AI tools that allow filmmakers to modify existing footage. These can help with tasks such as removing unwanted objects from a scene or adjusting backgrounds during post-production. The technology is designed to work with footage from a film that has already been shot, rather than independently generating an entire movie.The acquisition is one of Netflix's major investments in AI-powered filmmaking. The company is looking to develop tools that can support production, while other entertainment businesses are also exploring AI to manage costs and improve their work.However, the acquisition does not establish a direct link between Netflix's AI investments and its reported workforce reductions. The company has yet to confirm the layoffs or explain whether the restructuring involves changes to its technology or production teams.- Ends