Netflix cuts 1,000 jobs and reshuffles leadership as shares plunge 40%

Netflix has cut around 1,000 jobs and replaced its content chief as the streaming company faces growing investor concerns over slowing audience engagement, declining viewing share and its ability to deliver new global hits.

The company laid off approximately 6% of its workforce on October 14, marking its largest round of job cuts in four years. A day later, it replaced Bela Bajaria, who oversaw its television series, films, live events, sports and video podcasts, with Peter Rice, a former Fox and Disney executive.

The moves come as Netflix seeks to strengthen its content strategy and respond to a challenging competitive environment. 

Despite remaining the world's most-watched paid streaming service, with more than 325 million subscribers, the company has struggled to sustain audience engagement and maintain its growth momentum.

Its share price has fallen more than 40% in 2026, adding to investor concerns about the company's future revenue growth.

Netflix's challenge is compounded by the end of major franchises and difficulties in producing new breakout titles. The company has increased its investment in content substantially over the past decade, spending more than three times as much on content as it did in 2016.

However, that spending has not consistently translated into the audience engagement and hit programming needed to sustain its momentum.

The appointment of Rice signals Netflix's intention to reassess its content strategy, particularly in the US market.

Rice brings three decades of experience across film and television. He previously led Fox Searchlight, overseeing films including Little Miss Sunshine, Juno and Slumdog Millionaire, and held a senior leadership position at Disney.

Netflix co-chief executive Ted Sarandos told employees that the leadership transition presented an opportunity to take the company's content slate to the next level.

Bajaria joined Netflix in 2016 and became chief content officer in 2023, succeeding Sarandos. Her approach emphasised commercially accessible, premium entertainment designed to appeal to broad audiences.

The change comes amid the departure of several prominent creative partners. The Duffer brother, moved to Paramount in 2025, while executive producer Shawn Levy announced his departure for Disney in September. Director David Fincher allowed his deal with Netflix to expire, and filmmaker Noah Baumbach moved to Warner Bros.

These departures have increased questions about Netflix's ability to retain creative talent and consistently produce programmes that attract large global audiences.