Netflix Is Profitable and Still Growing. Why Did It Just Make a Huge Round of Layoffs and Oust Its Top Content Exec?
Netflix’s record profits did not prevent it from cutting around 1,000 jobs and replacing chief content officer Bela Bajaria with Peter Rice. The changes come as investors question whether the company can keep growing at its earlier pace, particularly in the US and Canada, where revenue growth and viewing have weakened.
Netflix earned $11 billion in 2025 as revenue rose 16% to $46.6 billion, and held $9.1 billion in cash against $14.4 billion in debt as of 30 June. But US and Canada revenue growth slowed from 14% to 10% in the second quarter, and its shares were down 20% year to date. Co-CEO Ted Sarandos said Netflix sees room to strengthen its content slate in the region; analysts have lowered some revenue forecasts following the leadership change.
- Netflix cut around 1,000 jobs despite strong profits.
- US and Canada growth and viewing have softened.
- Peter Rice replaces Bela Bajaria as content chief.
Both sides, in good faith
The strongest fair case each way — we don't pick a winner.
The case for
The changes could be a strategic response to signs that Netflix’s earlier growth is harder to sustain, especially in its largest region. Supporters may argue that even a profitable company needs to control costs and refresh its content leadership to improve its slate, protect future growth and meet investor expectations.
The case against
The layoffs and leadership change may be seen as a costly disruption when Netflix remains highly profitable and revenue is still growing. Critics could argue that weaker growth and viewing call for careful investment in content and a clear explanation of the strategy, while cutting around 1,000 jobs and replacing a senior executive risks undermining creative capacity and confidence.