Netflix reduces workforce by 6% as growth slows, NPR reported
Netflix reduced its workforce by 6%, eliminating about 1,000 positions, as revenue growth slowed and leadership worked to overhaul its programming unit, NPR reported. The cuts arrived alongside third-quarter earnings disclosures and sweeping executive departures across the company’s creative hierarchy.
Peter Rice Replaces Bela Bajaria as Growth Slows
Co-chief executive Ted Sarandos admitted that the platform is not growing as fast as leadership demands. Engagement increased by just 2 percent during the first half of 2026. Nielsen figures from July showed Netflix generating 7.8 percent of viewing on connected TVs, trailing YouTube at 14.2 percent. Puck reported that Chief Content Officer Bela Bajaria is leaving the company after overseeing a $20 billion content budget since early 2023. Film chief Dan Lin is also expected to exit.
Peter Rice, the former Disney and Fox executive who was fired by Disney in 2022, will replace Bajaria. Netflix acted quickly after reports surfaced in late September that Rice met with Ynon Kreiz, according to the New York Post’s Page Six. Netflix staffers were already on edge regarding the workforce reductions when the news regarding Rice broke in Los Angeles.
| Executive | Role | Status |
|---|---|---|
| Bela Bajaria | Chief Content Officer | Departing |
| Dan Lin | Film Chief | Expected to leave |
| Peter Rice | Appointed | |
| Jinny Howe | U.S. and Canada Scripted Head | Retaining role |
Justifying the Workforce Reductions
Co-CEO Greg Peters defended the headcount reduction during an investor video conference on Tuesday, calling the cuts a hard trade-off for long-term growth. Netflix’s statement explained the company over-invested in certain areas built rapidly during past top-line growth phases.
We do not take these decisions lightly, but we also believe we have a responsibility to make hard trade-offs in service of our members, our partners, our employees, our investors, and ultimately our long-term growth, Peters said during the conference.
A memo from Sarandos this week emphasized the need for more buzzy hits for the UCAN market comprising the United States and Canada. Meanwhile, U.S. and Canada scripted head Jinny Howe appears safe in her role as she manages development for upcoming slates, according to insider reports.
Broader Industry Ripples
The sudden restructuring alters the studio's local-language content strategy established under Bajaria and may lead to fewer international investments. Talent agents and creative executives voiced concern over the Silicon Valley-style management approach as creative units absorb the fallout from the layoffs and leadership changes.