Netflix, the world’s largest streaming service, is restructuring its film group, resulting in layoffs and the departure of two of its most experienced executives. The restructuring will combine small and mid-sized picture production units, resulting in job cuts and scaling back the company’s output to ensure high-quality titles. Additionally, the company will centralize decision-making across different divisions.
The restructuring comes after Netflix added about 7.6 million subscribers in the fourth quarter of 2022, following a loss of subscribers in the first half of the year due to intense competition from Paramount+ and Disney+. However, average revenue per membership declined across regions in the last three months of 2022.
Lisa Nishimura, responsible for documentaries and smaller-budget films, and Ian Bricke, a vice president in the film group, will be leaving the company after more than a decade of service. Both executives played key roles in the development of Netflix’s film group, and their departures may signify a shift in the company’s direction.
The restructuring also comes after co-CEO Reed Hastings stepped down in January, handing over the reins to co-CEO Ted Sarandos and chief operating officer Greg Peters. Netflix has been trying to focus on revenue growth, including planning a crackdown on password sharing and cutting prices of its subscription plans in some countries to maintain subscriber growth.
Despite the challenges of the past year, Netflix continues to be a dominant force in the streaming industry. The company won four Academy Awards for its “All Quiet on the Western Front” and is likely to remain a major player in the years to come. However, the company will need to adapt to changing market conditions and intensifying competition if it hopes to maintain its position as a leader in the industry.