Netflix posts higher Q3 profit, revenue up 12% to $12.87B, growth worries pull shares lower

Netflix reported higher profits for Q3, with earnings at $3.66 billion, a 44% increase from the previous year. Revenue rose 12% to $12.87 billion. However, shares fell after the streaming giant lowered ad sales guidance, raising concerns about slowing revenue growth. The company announced it would lay off around 6% of its workforce, or nearly 1,000 positions, as part of broader organizational changes.

This latest round of cuts is the biggest in years. Netflix also replaced Chief Content Officer Bela Bajaria with Peter Rice, who will lead global content operations. Despite new releases like "East of Eden" and "The Diplomat," competition from streaming platforms like Amazon Prime Video and Disney+ continues to pose a challenge.

Netflix forecasted revenue of $13.4 billion for the current quarter, slightly below analysts' expectations of $13.5 billion.