Netflix has fired its content chief and several top executives while cutting 1,000 jobs, its largest reduction and shake-up since 2022. The author argues the core problem is declining engagement rather than finances: hours watched per subscriber are down 4% year over year, and viewing of the top 100 originals has fallen 20%. Despite pushing live events, podcasts and gaming, the author says these efforts have not worked well and that Netflix should focus on a few well-made movies and shows. The author notes Netflix shares have dropped nearly 50% over the past year, which could present an opportunity for long-term investors before the new content leadership puts its ideas to work in 2027.
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