Netflix is preparing a restructuring that will "impact" about 5% of its workforce, roughly 800 jobs, as early as next week, per Puck. Third quarter earnings land October 20.
The timing is the whole story. The axe falls next week. The earnings call lands October 20. Nobody sharpens an axe in a random week of October. You sharpen it in the week before the number. The 5%-Off is a line item with a press date.
The math was already volunteered. Engagement is up 2% year over year, the company is "not growing as fast as I want us to," and live programming "spend about 5% of our content budget" while it "generate about 1% of our watching." Sarandos called live events a "headwind to that number." The spreadsheet is telling you exactly which number gets cut. It is not the live events.
Last time Netflix did this, in 2022, 450 people walked out after the company lost 200,000 subscribers in a quarter. This time the numbers are fine. Growth is the problem. The company that invented the mid-season cancellation is running it on its own staff. No final season. No farewell tour. Just an email and a box.
YOUR TURN: Restructuring, or cancellation?
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