Netflix co-CEOs address layoffs and executive changes at staff town hall

Netflix co-CEOs Ted Sarandos and Greg Peters held a town-hall meeting with staff on Wednesday following the layoff of about 1,000 employees and a reshuffle of senior leadership. The changes include replacing Chief Content Officer Bela Bajaria with Peter Rice and the departure of head of film Dan Lin. Peters indicated that the current round of job cuts is expected to be the last for the near term.

Sarandos highlighted Rice’s industry experience, noting that he has led TV networks, movie studios and streaming services. He described Rice as “one of the really rare people in the industry who’s led TV networks, movie studios, streaming services. His creative instinct and his business acumen are remarkable,” and emphasized Rice’s background across various entertainment formats, including network, prestige cable, streaming, theatrical and live sports.

While Rice has limited direct streaming experience, Sarandos pointed to his former roles on the Hulu board and his involvement in green-lighting series such as Only Murders in the Building and The Bear. Producers and talent representatives have welcomed the hire for his creative credentials and industry relationships.

Sarandos also reiterated the company’s focus on “member joy” and improving execution of its content strategy, especially in the U.S. market. He acknowledged that Netflix’s growth has slowed and that the business model needs better execution to deliver globally appealing shows.

The town-hall discussion came after a mixed earnings report that showed solid subscriber growth but fewer breakout hits, contributing to a recent decline in Netflix’s stock price.