Netflix is confronting a deepening set of business problems, and its response has been a round of layoffs and executive departures that has raised questions about how the streaming company plans to recover. The shake-up comes as Netflix has missed ad revenue targets, seen sluggish growth, and failed in its attempt to acquire Warner Bros.
Losing Warner Bros. to David Ellison's Paramount was a significant setback for Netflix. The acquisition would have given the company an easier path to expand its catalog, grow its user base, and establish a stronger presence in movie theaters. Netflix now must address those challenges on its own while also examining why its current content slate has not produced record profits. Co-CEO Ted Sarandos told investors that Netflix's content around the world is largely working, but he acknowledged the company needs better execution in the US, where business is not growing as fast as it could or as the company would like.
Bela Bajaria, who led TV and content at Netflix for the past decade, was dismissed. She had driven Netflix's expansion into unscripted programming, sports, and internationally produced projects, and was instrumental in the production and rollout of series including Money Heist and Squid Game, the latter of which became a global phenomenon and won the streamer a few Emmys. Sarandos praised her dedication, innovation, creativity and leadership, but reports indicated she was used as a scapegoat and let go with little notice.
Film chairman Dan Lin, who joined Netflix in 2024 and reported directly to Bajaria, also exited. Netflix had hired Lin, who produced financial hits such as Warner Bros.' The Lego Movie and Disney's live-action Aladdin, to help rein in spending. He appointed Doug Belgrad as VP to oversee original content, but The Hollywood Reporter noted that Lin's brusque personality could create friction with high-profile talent including Greta Gerwig and Ben Affleck.
Netflix named Peter Rice, formerly president of 21st Century Fox and later chairman of Walt Disney Television, as incoming COO. Rice, who was fired by Bob Chapek in 2022 and pivoted into producing projects including Saturday Night, 28 Years Later, and an upcoming Elden Ring movie, brings traditional studio film development experience. Netflix plans sizable theatrical runs for The Magician's Nephew and the KPop Demon Hunters sequel and is trying to secure an Academy Award for Javier Calvo and Javier Ambrossi's La bola negra.
The company's vague references to improving monetization suggest the service will only get more expensive. Netflix needs to show it has a clear plan for the future, starting with acknowledging the larger issues with its business model instead of throwing executives under the bus.
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