Andrea Innocenti The streaming giant has initiated a major reorganization that affects both its internal structure and its plans to expand into the gaming world. After months of warning signs, management has decided to take action, with measures that impact hundreds of employees and change the way content is produced and distributed.
Internal restructuring: layoffs and leadership changes
In recent days, Netflix has ousted three key production figures: chief content officer Bela Bajaria , film division head Dan Lin , and his deputy Doug Belgrad . Immediately afterward, it announced the loss of approximately 1.000 positions , equivalent to 6% of its global workforce, the largest cut since 2022.
The announcement came in an internal email from co-CEO Ted Sarandos , who explained the need for a reorganization to address slower-than-expected growth.
Creative leaders exit
Bajaria's departure caps a successful decade that includes titles like Bridgerton , Stranger Things and Beef.
His successor, Peter Rice , comes from Disney Television and brings with him a long history of programming for traditional and streaming channels, as well as a solid familiarity with film distribution from his time at 20th Century Fox.
1.000 jobs cut
The workforce downsizing comes amid rising profits ($3,66 billion in the latest quarter), but with advertising revenue forecasts revised downward (from $3 billion to $2,7 billion for 2026). Analysts noted that despite a 2% increase in subscribers in the first half of 2026, the stock price has lost more than 40% compared to the previous year, fueling further internal tensions.
The “Meridian Project”: A New Direction for Content
Alongside the layoffs, management unveiled an internal strategy called Project Meridian . The goal is to focus most of the investment on flagship TV series and films, drastically reducing resources allocated to podcasts, live sports events, and video games.
Focus on series and films
Over the past two years, Netflix has attempted to compete with TikTok and YouTube by pushing short-form content, podcasts, and even games. The results have been disappointing: only 3,5% of subscribers use the platform to play games, ten percentage points lower than expected. The new plan therefore calls for a return to the original focus that made the service famous, focusing on high-quality productions that can attract and retain viewers.
Rethinking the film distribution strategy
Another change concerns original films. After years of nearly simultaneous streaming releases, Netflix has decided to adopt a more traditional model, leaving films in theaters for longer periods before bringing them to the platform. Recent examples include Black Ball , which will run for 47 days, and Greta Gerwig's upcoming Narnia: The Magician's Nephew , which is slated for a longer theatrical run.
Xbox and Netflix: Negotiations for Exclusive Rights Ended
Meanwhile, Netflix sought to strengthen its presence in the video game market by striking a deal with Microsoft for exclusive rights to Xbox franchises. The initial offer was $500 million for seven years, but Microsoft demanded $800 million , a sum deemed excessive by Netflix, which subsequently withdrew the offer.
Microsoft's initial offer and counter-offer
Netflix's proposal aimed to create films and series based on titles like Gears of War and Diablo , cementing an exclusive partnership. Microsoft, led by Asha Sharma, instead preferred a more flexible model, dividing the rights among multiple partners: Prime Video for Fallout , Paramount for Call of Duty , and Warner Bros. for the Minecraft sequel.
Implications for media plans
The failed deal prompted Xbox to create the Xbox XP division , dedicated to film, television, merchandise, and theme parks, and to pursue smaller deals with various publishers. For Netflix, the lack of an exclusive is leading to a rethink of how to integrate gaming content into its offerings without compromising its core strategy based on series and films.
Netflix is undergoing a realignment: staff reductions, a leadership overhaul, a focus on high-quality content, and the abandonment of an ambitious deal with Xbox. It remains to be seen whether these moves will halt the decline in its stock price and win back viewers lost to shorter-form, social platforms.