Netflix might need to buy its way out of its biggest problem. And it won't come cheap.

In this photo illustration, the Netflix logo appears on a cell phone with a streaming site catalog page in the background in Creteil, France, on December 10, 2025. (Photo by Samuel Boivin/NurPhoto via Getty Images) Samuel Boivin/NurPhoto via Getty Images This post originally appeared in the Business Insider Today newsletter.

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The king of streaming is shrinking parts of its kingdom.

Netflix is cutting roughly 1,000 employees , or about 6% of its staff, in the streamer's largest round of layoffs since 2022.

Product, tech, and HR teams are among the areas being hit.

It comes amid a dark stretch for Netflix's stock, which is down almost 42% over the past year and nearly 25% in 2026.

BI's Jame Faris broke down five key reasons why Netflix has been having such a tough time .

But the layoffs didn't immediately ease investors' concerns.

Netflix's stock price barely moved, finishing the day up 0.16%.

BI's Peter Kafka does a good job of explaining why Netflix's problems won't be solved by job cuts .

Netflix reports earnings on Tuesday, but the streamer's pain point isn't a secret: engagement.

With roughly 325 million paid subscribers, Netflix's reach is still massive.

But investors have been dogging Netflix about how long all those people are engaging with its shows.

Things came to a head this summer during Netflix's second-quarter earnings .