// THE VERGE — GAMING
Netflix can’t fire its way out of this downward spiral
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A fresh wave of layoffs and high-profile executive dismissals shows us that the streaming giant is in choppy waters.
A fresh wave of layoffs and high-profile executive dismissals shows us that the streaming giant is in choppy waters.
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Netflix co-CEOs Ted Sarandos and Greg Peters assured investors this week that they have nothing to be concerned about. Sure, the company was going to lay off 1,000 employees, downsizing its product, tech, and legal departments, and was ousting its chief content officer, film chairman, and film vice president. But it had also hired a new COO — “one of the most effective at-scale operators in the entertainment industry,” Sarandos said — to turn things around.
Though executive shake-ups aren’t uncommon, having so many of them back to back would send a concerning message even in the best of circumstances. With Netflix, however, the situation looks undeniably grim given the streamer’s recent troubles with missed ad revenue targets, sluggish growth, and a failed attempt at acquiring Warner Bros. Losing WB to David Ellison’s Paramount was a huge blow — that merger would have given Netflix an easy way to expand its catalog, grow its user base, and build a more established presence in movie theaters. The company now has to navigate those challenges on its own while also figuring out why its current content slate hasn’t resulted in record profits.
Sarandos admitted that Netflix needs “better execution” in the US