Netflix laid off 1,000 employees, representing approximately 6% of its total workforce, during the third quarter of 2026. The company ousted Bela Bajaria as chief content officer and appointed Peter Rice to the role.
Additional departures included Dan Lin, head of film, and Doug Belgrad, alongside Carolina Garcia, the director of original series. Netflix met revenue expectations for the third quarter of 2026 and slightly exceeded bottom-line targets.
Wall Street analysts had predicted an average revenue of $12.87 billion and earnings per share of 82 cents for the period. The company projects a 26.0% operating margin for the fourth quarter, which includes a 120 basis point negative impact from layoff costs.
In the same quarter last year, the operating margin stood at 24.5%. Global hours viewed rose by 2% year over year during the first half of 2026.
Netflix plans to expand its ad-supported tier to 15 new countries in 2027, including nine European nations, Colombia, Peru, and New Zealand in March. Netflix executives stated, "These organizational changes enable us to continue to aggressively invest in high impact areas to improve our service, and drive growth and innovation."
The company explained, "The goal of separating the publication of the report from our earnings results is to keep the focus on our primary financial metrics — revenue and operating profit."
