Netflix Co-CEO admits US streaming platform needs better shows after 1,000 layoffs
Netflix is resetting its content operation. The streaming company recently laid off about 1,000 employees, replaced Chief Content Officer Bela Bajaria, and announced the departure of film chief Dan Lin as it faced questions about slowing growth and programming performance. Netflix informed Bajaria of her removal hours after the workforce reduction, while it announced Lin’s departure several days later.
The leadership changes were followed by third-quarter results showing Netflix’s slowest revenue increase in nearly three years and a reduced advertising forecast. According to a report by the news agency Reuters, Netflix co-CEO Ted Sarandos told analysts the company could improve its programming slate, but he rejected the need for a complete strategy change.“I know that we could do better,” Sarandos said in a post-earnings video call.
“Now we’ve seen an opportunity to take our slate to the next level.”Why Netflix changed its programming leadershipSarandos reportedly complained internally for months that Netflix lacked enough new hit shows and that US viewing time was falling, a Wall Street Journal report claimed. The company has expanded into video games, podcasts, and live events, but Sarandos now wants it to strengthen its core television and film business.Netflix replaced Bajaria with Peter Rice, a former executive at Disney and Fox.
Rice will also oversee the film division until the company appoints a successor to Lin.“Peter Rice understands talent relations, and in a competitive market, creative talent have choices of where they want to work,” Sarandos said this week, the Reuters report noted. “We want Netflix to always be the place that they love to do the best work of their life.”The company said the shake-up would help it produce films and TV programs that make the service a necessary subscription for viewers.What Netflix’s results showedNetflix reported third-quarter revenue of $12.87 billion, up 11.8% from the previous year.
The figure matched Wall Street forecasts, but marked its lowest revenue growth rate in nearly three years.Earnings per share reached 87 cents, above the 82 cents analysts surveyed by LSEG predicted. However, Netflix forecast fourth-quarter net income of $2.79 billion and earnings of 67 cents per share, below analysts’ expectations.The company also reduced its expected 2026 advertising revenue from approximately $3 billion to about $2.7 billion.
Netflix attributed the revision to the slower-than-expected introduction of some advertising-product features in its third-quarter shareholder letter.Netflix shares fell nearly 6% in after-hours trading following the results. More than 20 brokerages subsequently lowered their price targets, Reuters report said, citing LSEG data.Sarandos said Netflix did not require a “fundamental shift” in its overall strategy, but acknowledged one area that needed attention: “We do need better execution in the US.”You use AI every day.
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