1,000 layoffs, two top execs fired: What Netflix co-CEO Greg Peters told employees

Netflix had a turbulent October. It cut nearly 1,000 jobs and dismissed two senior content executives, making this its biggest job-cutting and executive turmoil episode in five years, according to Bloomberg. The layoffs affected about 6% of its workforce.

At a staff town hall, co-CEO Greg Peters said “two things can be true.” Netflix is growing, profitable, and enviable to rivals. Yet it still needs to improve and push growth further. His message recognized the company’s strengths without minimizing its problems.

The tension comes from weaker engagement. Members watched more than 97 billion hours in the first half of 2026, but that was only 2% above the prior year. Netflix also faced fewer Emmy wins and a weak year-end forecast. Peters’ comments aimed to steady employees while investors wait for stronger growth numbers.

The layoffs were large but not a majority of Netflix’s staff. The company eliminated nearly 1,000 positions, representing about 6% of its workforce. Netflix had around 16,000 full-time employees at the end of 2025.

That percentage shows the cuts were broad enough to affect the company significantly. Product, technology, legal, and human resources teams were hit hardest. The layoffs came alongside the removal of two senior content executives, so October brought both workforce reductions and leadership change.

Netflix made these moves despite growing at double-digit rates and expecting about $15 billion in profit this year. The reason was concern about future growth, not an immediate collapse. Viewing increased only 2% in the first half of 2026, and subscribers watched on fewer days and spent less total time on the service. Those trends made efficiency and stronger performance more urgent.

Bela Bajaria led Netflix’s content operation as chief content officer, and Dan Lin led its film business. Bajaria had spent a decade at Netflix. Their dismissals marked a major change at the top of the company’s content organization.

Ted Sarandos told analysts that Peter Rice would replace Bajaria and understood talent relations. The timing made that issue especially important. The Duffer Brothers and Shawn Levy had moved to other studios, while David Fincher chose not to renew his deal. These departures suggested Netflix needed to strengthen relationships with important creative partners.

Sarandos dismissed Bajaria on October 14, and Lin was dismissed two days later. The article does not give a separate reason for Lin’s removal. Together, the firings showed Netflix was responding to content and talent concerns while also trying to keep its growth engine moving.

Profit measures what Netflix earns now, while viewing helps show whether its service remains compelling. The company is growing at double-digit rates and is on pace for about $15 billion in profit this year. Still, subscribers are watching on fewer days and spending less total time on Netflix.

The warning signs appeared in several places. Members watched more than 97 billion hours during the first half of 2026, only 2% more than a year earlier. Netflix also won its fewest Emmys in a decade. Meanwhile, major creative partners moved elsewhere, and David Fincher did not renew his deal. Those developments raised questions about future content strength.

Job cuts can reduce expenses, while executive changes can target leadership problems. Morgan Stanley praised Netflix’s decisiveness, but Pivotal Research remained concerned. Shares fell 6.6% after a weak year-end forecast. Netflix wants profit today and stronger growth tomorrow.

When Netflix says members watch on fewer days, it means subscribers use the service on fewer calendar days each month. Spending less time means their total viewing hours are also declining. A subscriber may remain subscribed but watch less frequently or for shorter sessions.

That behavior matters because viewing reflects how strongly Netflix fits into people’s routines. In the first half of 2026, members watched more than 97 billion hours, but this was only 2% above the previous year. The company therefore gained little viewing momentum despite continued growth.

Lower engagement can make future growth harder. It may signal that content is attracting less attention, or that members have less reason to return regularly. The article links this concern with fewer Emmy wins and lost creative partners. Netflix remains profitable, but it needs stronger viewing growth to reassure investors.

Netflix’s future growth depends on more than keeping subscribers and earning profit from them today. If people watch on fewer days and spend fewer hours on the service, the company may have less momentum to attract new members or deepen their use.

The current numbers show the risk. Members watched over 97 billion hours in the first half of 2026, only 2% more than a year earlier. Netflix also won its fewest Emmys in a decade, while several important creative partners moved to other studios. These are signs that content and engagement may not be expanding quickly enough.

Netflix could remain profitable while growth slows. But investors may demand better forecasts, and management may continue cutting costs or changing content leadership. The company’s shares already fell 6.6% after a weak end-of-year forecast. Peters’ promised growth must appear in upcoming results.

A streaming platform generally makes money by charging recurring subscription fees. Some platforms also sell advertising around or within their programs. Revenue rises when they gain subscribers, raise prices, or generate more advertising sales. The article does not provide Netflix’s subscription or advertising figures.

Costs matter just as much. Platforms spend heavily on creating, licensing, and promoting content, along with technology and staff. Profit depends on bringing in more revenue than those costs. Viewer engagement is the mechanism connecting content to the business: frequent viewing can support retention and make the service feel valuable.

Netflix’s problem is weaker engagement, not an immediate lack of profit. Members watched over 97 billion hours in the first half of 2026, only 2% more than a year earlier. If viewing keeps slowing, Netflix may need better content, tighter spending, or both to sustain growth. This paragraph uses general streaming-business knowledge beyond the article’s specific figures.