Netflix cuts 1,000 jobs and replaces content leaders as growth slows

Netflix's cuts are happening at a profitable company, not one reporting losses. According to Variety, Netflix earned $11 billion in net profit in 2025 on revenue of $46.6 billion, up 16%. Its projected revenue growth for 2026 was slower, at 13% to 14%.

The pressure has centred on growth and viewing engagement. Entrepreneur reported on October 15 that Netflix shares had fallen more than 40% over the preceding year as engagement slowed. That day, The Hindu reported plans to eliminate about 6% of the workforce as part of wider organisational changes.

On October 15, the restructuring reached Netflix's most senior content role. The Hollywood Reporter reported that Chief Content Officer Bela Bajaria was leaving after joining the company in 2016, as Netflix shed 1,000 employees.

Netflix named Peter Rice as her replacement the same day. According to Deadline Hollywood, the former Disney executive will start on October 26 and oversee all content at Netflix.

On October 19, the departures extended to film leadership. Variety reported, citing multiple sources, that Dan Lin had been dismissed as Netflix's head of film. His exit followed Bajaria's removal and the broader job cuts.

The financial results arrived on October 20. The Wrap reported revenue of $12.87 billion, matching the estimate it cited, and profit of 87 cents per share, above the expected 82 cents.

But the outlook disappointed investors. Bloomberg reported that Netflix forecast a fourth consecutive quarter of slowing sales growth. Business Insider reported that shares fell 6% despite the earnings beat.

Netflix's executives are presenting the cuts as a reallocation of resources for future growth. According to Deadline Hollywood, co-CEO Greg Peters said the layoffs reflected the need to examine where the company could trim or redirect investment.

The content overhaul also comes with an acknowledgement that performance needs to improve. Variety reported that Ted Sarandos said, "I know that we could do better," while addressing the executive departures and Netflix's effort to boost viewing engagement as revenue growth cools.

The latest results leave two different signals: quarterly profit beat expectations, but the forecast points to further slowing growth. Deadline reported that lowered fourth-quarter revenue and advertising guidance weighed on the stock.

Rice's October 26 start is the next concrete leadership milestone. His remit covers all Netflix content, according to Deadline Hollywood. The open question is how that responsibility translates into programming decisions after the departures of Bajaria and Lin.

Engagement and advertising performance will be important tests of the restructuring. CNBC identified both as areas investors were watching ahead of the results, while Bloomberg reported that the fourth-quarter forecast points to another slowdown in sales growth. The supplied coverage does not yet establish whether the cuts or leadership changes will reverse those trends.