Netflix (NFLX) stock fell in early trading Friday after the streaming giant announced a management shakeup amid slowing viewer engagement.
Former Disney executive Peter Rice has been named Netflix’s next chief content officer, replacing Bela Bajaria, who is leaving after nearly a decade at the streamer.
The move comes ahead of the company’s quarterly results release next week, as it seeks to reinvigorate audience growth and strengthen its content amid increasing competition.
Earlier this week, Netflix announced it would cut 6% of its workforce, or about 1,000 employees, which would be the company’s largest workforce reduction since 2022.
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The changes at the streaming giant come amid a generational shift that is reshaping viewing habits, with audiences increasingly moving away from traditional TVs in favor of mobile devices, noted Tom Champion, Piper Sandler director and senior research analyst.
“A lot of the (video) growth has come from short form, content specifically designed for mobile,” Champion told Yahoo Finance. “This gave rise to TikTok and Instagram Reels, and YouTube is increasingly emerging as the superpower in terms of video content.”
Netflix is expected to release its quarterly results next Tuesday, October 20, after the market close.
Ines Ferre is a senior economics reporter for Yahoo Finance.
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