Netflix Is Profitable and Still Growing. Why Did It Just Make a Huge Round of Layoffs and Oust Its Top Content Exec?

Oct 16, 2026 5:15am PT Netflix Is Profitable and Still Growing. Why Did It Just Make a Huge Round of Layoffs and Oust Its Top Content Exec?

By Todd Spangler

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Todd Spangler

NY Digital Editor

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In 2025, Netflix notched a net profit of $11 billion on a 16% increase in revenue, to $46.6 billion. It expects revenue growth to cool off this year, projecting an increase of 13%-14%, while the streamer is aiming to boost operating margin by 200 basis points, to 31.5%. It has a healthy balance sheet, with $9.1 billion in cash and equivalents and very manageable total debt of $14.4 billion as of June 30.

So why did Netflix, which is still throwing off a good chunk of change, this week lay off around 1,000 employees — its biggest cutback to date?