Netflix is restructuring despite having 325 million subscribers and strong profits. The company cut about 1,000 jobs—roughly 6 percent of its workforce—and replaced chief content officer Bela Bajaria with Peter Rice, a Fox and Disney veteran. The moves follow a 40 percent decline in Netflix’s stock price over the past year and slowing viewer engagement.
CEO Ted Sarandos has said Netflix isn’t growing fast enough, and the company is struggling to find new global hits after the end of popular series like “Stranger Things.” Competitors such as YouTube are gaining share of U.S. television viewing time, according to Nielsen, while Netflix’s share declines. The company also had its worst Emmy showing in a decade this September.
Some high-profile creators have departed for rivals. The Duffer brothers moved to Paramount, Shawn Levy joined Disney, and directors like David Fincher and Noah Baumbach have let deals lapse or left for other studios. Analysts say Netflix must act boldly to reassure investors concerned about engagement and revenue growth.
Netflix’s troubles intensified after its $80 billion bid for Warner Bros. Discovery’s studio and streaming business failed, losing out to Paramount Skydance. Sarandos acknowledged the pursuit “threw the business narrative off for investors” but said he does not regret the attempt.
Source: New York Times Business · Summarized by HeadlinesBriefing