Netflix Posts $12.9 B Q3 Revenue, Cuts 1,000 Jobs

Netflix reported third‑quarter 2026 revenue of $12.87 billion, matching Wall Street forecasts, while announcing a restructuring that cuts about 1,000 jobs. The top‑line grew 11.8% year‑over‑year, down from 17% growth in the same quarter a year earlier. Net income rose to $3.66 billion, up from $2.5 billion a year ago, and earnings came in at 87 cents per share, beating the 82‑cent consensus. Co‑CEOs Ted Sarandos and Greg Peters said the company expects a Q4 operating margin of 26.0%, which includes a 120‑basis‑point decline tied to the layoffs but is still higher than the 24.5% margin recorded a year earlier. The layoff affects roughly 6% of Netflix’s workforce and saw chief content officer Bela Bajaria removed, with veteran TV executive Peter Rice named as her successor. The move also saw head of film Dan Lin, his deputy Doug Belgrad and original‑series director Carolina Garcia depart. Analysts note that per‑subscriber engagement has drifted downward, especially in the United States. Netflix’s “What We Watched” report showed global hours viewed rose 2% year‑over‑year, but average monthly viewing time per member fell from 66 hours in the first half of 2023 to about 49 hours in the first half of 2026. The company will shift the viewing report to an annual release in the first quarter of 2027 to keep focus on revenue and operating profit. "Member response to our 2026 price increases is consistent with prior changes," the letter said, adding that the firm aims to accelerate view‑hour growth.

Context

Streaming services gauge health by both revenue and viewer engagement; cuts in staff and content leadership are typical ways to control costs when growth slows. Lower average viewing time can pressure subscription pricing and content spend, prompting firms like Netflix to refocus on high‑impact areas.