With layoffs and a firing, Netflix hurries to rewrite its narrative

Netflix has been grappling with declining stock prices and falling viewership numbers, prompting significant changes within the company. In October, the streaming giant laid off around 1,000 employees, constituting roughly 6% of its workforce, marking its largest round of cuts in four years. Earlier that week, Netflix replaced Bela Bajaria, who managed the company's TV series, movies, live events, sports, and video podcasts, with Peter Rice, a veteran from Fox and Disney.

These moves were driven by the company's inability to grow rapidly enough and a 40% plunge in its stock price over the past year. Netflix's stock has been under pressure due to concerns about slower engagement, which could negatively impact revenue growth. The company's share of TV viewing time in the US has also declined, falling behind competitors like YouTube, according to Nielsen.

Furthermore, Netflix has struggled to produce hit shows, with popular series like Stranger Things and Avatar: The Last Airbender experiencing viewership declines. The company's bid for Warner Bros.' studio and streaming business in 2025 also contributed to investor doubts about its long-term strategy. Despite abandoning the bid, Netflix's share price continued to fall.

Netflix's co-CEO Ted Sarandos acknowledged that the leadership changes were necessary to propel the company forward, especially in the US market.