On October 14, 2026, Netflix announced plans to eliminate approximately 1,000 positions, representing about 6% of its global workforce. The layoffs are the streaming company’s largest workforce reduction since 2022, with most cuts affecting its product, technology, legal and human resources departments (The Globe and Mail/Reuters; CTV News/Reuters).
Netflix’s co-chief executives, Greg Peters and Ted Sarandos, informed employees of the reductions in an internal memorandum, explaining that the company is prioritizing its people and resources while continuing to invest in future growth. The announcement comes amid increasing competition for viewers from other streaming services and online video platforms, including YouTube (Reuters via CTV News).
Netflix has operations in Canada, including offices in Toronto and Vancouver (Netflix). However, the company has not publicly disclosed whether Canadian employees are affected by the latest round of layoffs.
For Netflix employees working in Canada, understanding their employment rights is important if they receive a termination notice or severance package. Canadian employees may be entitled to significantly more compensation than the minimum amount initially offered by their employer.
Why the Netflix Layoffs Matter for Canadian Employees
Netflix is headquartered in California, but employees working in Canada generally have employment rights under applicable Canadian laws, regardless of where their employer’s head office is located.
In the United States, employment is often governed by “at-will” principles, allowing employers to terminate employment without notice in many circumstances. Canadian employment law provides different protections.
For non-unionized employees in Ontario, the Employment Standards Act, 2000 establishes minimum termination entitlements. Depending on the terms of their employment contracts and individual circumstances, employees may also be entitled to common law reasonable notice or compensation in lieu of notice.
This means that an Ontario Netflix employee whose position is eliminated may be entitled to more than the compensation offered in an initial severance package.
Read more: At-Will Employment in Canada: Know Your Rights
What Severance Pay Could Netflix Employees Receive?
Severance entitlements in Ontario depend on several factors, and there is no single formula that determines how much compensation an employee should receive under common law.
Courts generally consider factors such as:
- The employee’s age
- Length of employment with Netflix
- Position, responsibilities and level of seniority
- Availability of comparable employment
- Compensation and other relevant circumstances
These considerations, commonly known as the Bardal factors, help determine the appropriate reasonable notice period (Bardal v. The Globe & Mail Ltd.).
For some employees, particularly those with lengthy service or specialized professional or management positions, common law entitlements may amount to several months of compensation or more.
Ontario employees may also qualify for statutory severance pay in addition to termination pay where the applicable requirements are met.
Employees should not assume that the first severance offer they receive represents their full legal entitlement.
Wondering what you may be owed? Use Monkhouse Law’s Severance Pay Calculator for an initial estimate of your potential entitlements.
What Happens to Bonuses, Stock Options and Other Compensation?
For employees working in Netflix’s technology, product, management and other corporate departments, compensation may extend beyond base salary.
Depending on their role and employment arrangements, employees may receive bonuses, stock options, restricted stock units (RSUs), incentive compensation or other benefits.
When employment is terminated, these additional forms of compensation can become important in determining the full value of a severance package.
Employees should carefully review how their termination package addresses:
- Base salary and any outstanding wages
- Annual bonuses and performance incentives
- Stock options, RSUs and other equity-based compensation
- Health, dental, disability and other benefits
- Retirement contributions, where applicable
- Accrued vacation pay and other outstanding entitlements
Under Canadian employment law, employees may be entitled to compensation for certain bonuses or incentives they would have received during the applicable reasonable notice period, depending on the governing agreements and plan terms.
The Supreme Court of Canada’s decision in M. v. Ocean Nutrition Canada Ltd., 2020 SCC 26, confirmed important principles concerning incentive compensation during the reasonable notice period.
A severance package that considers only an employee’s base salary may not reflect the full compensation potentially owed.
Can Netflix Terminate Employees Without Cause?
In Ontario, employers can generally terminate non-unionized employees without cause, including when eliminating positions as part of a restructuring, provided they meet their legal obligations.
A company does not necessarily commit wrongful dismissal simply because it eliminates a position or reduces its workforce.
However, employees may have a wrongful dismissal claim if they are terminated without receiving the notice or compensation required by their employment contract or applicable law.
This distinction is particularly important during large corporate layoffs. Even where a company has a legitimate business reason for reducing its workforce, it must still comply with the employment laws that apply to affected employees.
What Should Netflix Employees Do Before Signing a Severance Package?
Employees who receive a termination notice should review their severance package carefully before signing a release or accepting an offer.
Potential concerns include:
- Insufficient termination or severance pay: The offer may not reflect the employee’s full statutory or common law entitlements.
- Missing bonuses or equity compensation: Stock awards, incentives or other compensation may not be properly addressed.
- Early termination of benefits: The package may not provide the benefits continuation required by law or otherwise owed.
- Short acceptance deadlines: Employees may feel pressured to sign before obtaining independent legal advice.
- Broad release agreements: Signing may prevent employees from pursuing additional compensation or legal claims.
A severance package may appear generous while still falling short of an employee’s legal entitlements, particularly when bonuses, equity awards and benefits form a significant part of their compensation.
Employees should consider obtaining legal advice before agreeing to a final settlement.
How Monkhouse Law Can Help Employees Affected by Netflix Layoffs
Monkhouse Law Employment Lawyers represents non-unionized employees in severance negotiations, wrongful dismissal claims and other employment disputes.
Our employment lawyers can review termination packages, assess potential entitlements under Ontario employment law and determine whether an employee may be entitled to additional compensation.
For Netflix employees, this may include reviewing salary, bonuses, incentive plans, equity compensation, benefits and other terms of employment.
If you work for Netflix in Canada and have received a termination notice or severance offer, understanding your rights before signing an agreement can help you make an informed decision.
Contact Us for a Free Consultation
If you have been laid off or offered a severance package by Netflix in Canada, do not sign anything before understanding your legal rights.
Monkhouse Law Employment Lawyers offers a free 30-minute phone consultation to help employees understand their potential severance entitlements and options following termination.