5 reasons Netflix is struggling as it cuts about 1,000 staffers

Netflix is in a slump — and it's not just because you can't find a hot new show to watch.

Netflix's viewership growth has slowed as free competitors like YouTube gain momentum, and initiatives like games and podcasts have yet to become breakout hits. Add in the company's surprise bid for Warner Bros., which it later abandoned, and some investors are feeling on edge.

Many of Netflix's struggles aren't unique to the "Stranger Things" maker, which disrupted Hollywood by pioneering paid TV streaming and has a major influence over culture.

Other entertainment giants like Disney and NBCUniversal have turned to layoffs recently.

Add BI in Google so our reporting is easier to find when you’re searching for what matters.

Netflix co-CEO Ted Sarandos told Bloomberg at an event last month that "we're not growing as fast as I want us to, and we're working on making that move faster."

Netflix grew global viewing hours by 2% year over year to 97 billion in the first half of 2026. The streaming giant also announced last quarter that it would share its engagement report only once a year, down from twice a year.

Investors are worried that slowing engagement growth could hurt Netflix's ability to retain customers and persuade them to pay more, though the streamer has an industry-low cancellation rate.

The lack of a new breakout hit is also troubling for Netflix analysts. "Stranger Things," the platform's biggest show ever, ended last year, and the streamer needs to find new franchises and buzzy hits that can replace it.

YouTube's viewership share on US TVs was 14.2% in July — nearly double Netflix's 7.8% share, according to Nielsen.

Roku's free streamer and Tubi are also formidable competitors with shares of 2.9% and 2%, respectively. These no-cost services have grown as paid streamers like Netflix have raised their prices.

Then there's the popularity of social media platforms like TikTok and Instagram, which are hoovering up viewership hours.