Netflix can’t fire its way out of this downward spiral
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 Paramountwas a huge blow — that merger would have given...
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