Netflix (NFLX) shares rose on Friday morning, gaining 0.54% to $71.96, an increase of $0.39, after recovering from earlier lows near $70.40. The advance followed reports that the streaming company plans to reduce its global workforce by approximately 5%, a restructuring that comes as Netflix faces stronger competition and prepares for its upcoming earnings report.

Layoffs Would Be Largest Since 2022

Netflix plans to eliminate roughly 5% of its workforce, with an announcement possible as early as next week. Reuters reported the development on Friday, citing the original report and people familiar with the plans. The company declined to comment when Reuters sought confirmation of the proposed reductions.

Netflix employed approximately 16,000 full-time workers at the end of 2025, according to company figures. Based on that headcount, the proposed cuts could affect around 800 employees across its global operations. The company has not disclosed which departments or locations would face reductions under the reported restructuring plan.

If carried out, the reductions would mark Netflix's largest workforce cut since its restructuring efforts in 2022, when the company eliminated hundreds of positions after subscriber losses disrupted its expansion plans. Those layoffs followed slower revenue growth and shifts in consumer demand across the streaming industry. Cost management has remained a recurring theme across the streaming sector in the years since, as platforms have adjusted spending amid slower growth.

Competition Pressures Operating Costs

Netflix continues to compete with established streaming platforms and digital entertainment services for audience attention. YouTube has expanded its share of viewing activity and advertising spending across the entertainment market, while traditional media companies have pursued consolidation as they seek stronger positions in digital distribution.

In response, Netflix has broadened its operations beyond traditional subscription streaming to diversify revenue sources. The company has increased its investment in advertising services, live programming, and gaming experiences, businesses that provide additional growth opportunities as competition places greater pressure on subscription-based services.

Netflix also pursued a reported $72 billion acquisition of Warner Bros. Discovery, although the proposed transaction collapsed. The unsuccessful deal marked a departure from the company's longstanding focus on expanding through internal development. Its reported restructuring now places renewed attention on operating expenses and the efficiency of existing businesses.

Technology Investment Continues Ahead of Earnings

Netflix acquired InterPositive, an artificial intelligence filmmaking company founded by Ben Affleck, in March 2026. Bloomberg reported that the transaction could reach $600 million, including payments linked to future performance. The acquisition supports Netflix's efforts to improve production workflows and expand its technical capabilities.

InterPositive develops tools that help filmmakers modify existing footage during the post-production process. Its technology supports background adjustments and object removal without requiring teams to recreate entire scenes. Netflix has not established any connection between this acquisition and the reported workforce reductions.

The company will release its next earnings report on October 20, providing another update on business performance. Management will also have an opportunity to address operating costs, growth priorities, and developments across its services. Together, the possible announcement in the coming days and the October 20 earnings release frame the window in which more details about the reported plan could emerge. Until Netflix confirms the reported restructuring, the timing and final scale of the potential layoffs remain unannounced.

Source: Blockonomi — Netflix (NFLX) Stock: Rises as 5% Workforce Cuts Loom