Netflix is preparing to cut about 5% of its workforce, with an announcement possible as early as next week, Puck reported on Friday, citing people familiar with the plans.

Netflix had about 16,000 full-time employees at the end of last year, so a cut of that size would affect roughly 800 people.

The report comes three months after a soft third-quarter forecast sent its shares down 9%, and less than two weeks before it reports results on October 20.

Puck, which broke the story through media journalist Matthew Belloni, did not say which teams would be affected. Netflix has also not said whether the cuts are tied to a restructuring or to cost savings.

If confirmed, the layoffs would be the company’s largest since 2022. That year, Netflix let go of hundreds of employees after losing subscribers for the first time in a decade, as growth slowed once pandemic lockdowns ended.

This time the pressure comes from a different direction. Netflix is still growing, but it faces tougher competition as rival media groups merge and YouTube takes a larger share of both viewing time and advertising money.

YouTube has even started paying creators directly to keep their shows off Netflix. According to Nielsen, it accounted for 14.2% of US TV viewing time in July, nearly double Netflix’s 7.8%.

In response, Netflix has spread beyond subscriptions into advertising, live events, and games. Its advertising revenue is expected to roughly double this year to about $3 billion.

At the same time, the company has pushed staff across teams to build AI skills into their daily work.

Netflix’s co-chief executives, Greg Peters and Ted Sarandos, are due to discuss the third-quarter results in a video interview on October 20.

The call will likely give investors their first chance to hear from management about the cuts, if they go ahead.