Netflix ousted two of its top creative executives in recent days, signaling that co-CEO Ted Sarandos and other leaders believe the company must overhaul its television and movie slate to reverse a slide in U.S. viewer engagement.
Content chief Bela Bajaria was replaced last week, hours after a 1,000-person layoff she helped plan. Film chief Dan Lin was removed yesterday. The moves come as Netflix prepares to report third-quarter earnings today and face Wall Street questions about its content strategy.
Sarandos has told colleagues for months that Americans are spending less time on the service and that it lacks new breakout hits, according to people familiar with the matter. He has also said the company, which has branched into videogames and podcasts, needs to refocus on its core TV and film offerings.
The difficulties have mounted over the past year as Netflix has failed to produce new series or films matching the cultural impact of “Stranger Things” or “Squid Game.” Like other traditional media companies, it is losing attention to YouTube and TikTok.
The company’s stock has fallen more than 40% from a year ago, around the time it launched an unsuccessful bid for Warner Bros. Discovery’s studios and HBO Max. Investors viewed the pursuit as a sign of weakness for a company that long described itself as a builder rather than a buyer.
Subscriber growth has also stalled in the U.S. Analytics firm Antenna reported that Netflix added no net U.S. subscribers in any month through the end of September. Antenna tracks consumer subscription purchases through sources such as credit-card bills but excludes wholesale bundles. Netflix stopped disclosing subscriber totals in early 2025.