Netflix Cuts Jobs and Names Content Chief Ahead of Q3 Results

Netflix is preparing to report its third-quarter financial results after the market closes Tuesday, October 20, as its shares face mounting pressure from competition and concerns about audience engagement. The streaming company has responded with workforce reductions and a leadership change, while investors seek details on how management plans to sustain revenue growth.

According to Yahoo Finance market data, Netflix shares closed Friday at approximately $70, down more than 25% in 2026 from $93.76 at the end of 2025. The stock also stood roughly 35% below its mid-April high, amid concerns about viewing trends and intensifying competition from YouTube and streaming platforms carrying live sports.

Netflix is facing competition from Google's YouTube, which dominates viewing time, as well as live sports offerings on Amazon Prime Video and HBO Max, operated by Skydance. These competitive pressures have increased investor scrutiny of the company's growth strategy.

Reuters reported that investors are seeking details on how the streaming company intends to maintain growth. Co-CEO Ted Sarandos acknowledged the challenge, saying the company was "not growing as fast as I want us to." He also identified live programming as a potential growth driver.

For the third quarter, analysts expect Netflix to report earnings of $0.82 per share and revenue of $12.88 billion, according to Yahoo Finance data. The projected revenue represents an increase of approximately 12% from the same period a year earlier and closely matches the company's own forecast of $0.82 per share and $12.86 billion in revenue.

The company's previous earnings report disappointed investors. Netflix shares declined approximately 7% on July 17, the day after the company released its second-quarter results on July 16, when revenue came in slightly below analyst estimates.

Netflix announced Wednesday that it would eliminate 6% of its workforce, affecting approximately 1,000 employees. The reduction represents the company's largest round of job cuts since 2022.

On Friday, Netflix appointed former Disney executive Peter Rice as its next chief content officer, replacing Bela Bajaria. Shares fell nearly 3% that day, according to the source report.

Analysts have also lowered their price targets for Netflix shares. According to Benzinga data, five firms reduced their targets in October: Wedbush lowered its target to $90 from $105, BMO Capital to $125 from $135, KeyBanc to $85 from $92, Barclays to $70 from $80, and Morgan Stanley to $80 from $83. All except Barclays maintained a Buy rating or its equivalent.

KeyBanc analyst Justin Patterson outlined four areas for management to address in a research note: higher content investment, product changes, operating expense reductions, and consideration of a dividend. Netflix has never paid a dividend.

Patterson also pointed to the potential for efficiency gains from artificial intelligence as the company evaluates its cost structure. He wrote, "Given the size of the company today and potential savings from AI, we suspect there is room for some degree of expense realignment."

Yahoo Finance's Brian Sozzi urged Netflix executives to provide substantive answers during the earnings discussion rather than deliver a routine presentation. In comments on Yahoo Finance, he said, "This can't be a mailed-in earnings call for Netflix management."

Sozzi also called on executives to address investor concerns directly, adding, "Don't read off the script, give the Street what it wants."

Netflix is scheduled to release its third-quarter results after the market closes Tuesday, October 20, with investors watching for updated financial performance and details of the company's plans for content investment, operating costs, and future growth.