In 2025, Netflix notched a net profit of $11 billion on a 16% increase in revenue, to $46.6 billion. It expects revenue growth to cool off this year, projecting an increase of 13%-14%, while the streamer is aiming to boost operating margin by 200 basis points, to 31.5%. It has a healthy balance sheet, with $9.1 billion in cash and equivalents and very manageable total debt of $14.4 billion as of June 30.
\n\nSo why did Netflix, which is still throwing off a good chunk of change, this week lay off around 1,000 employees — its biggest cutback to date?
\n\nCompanies often make layoffs in crisis mode, such as when they’re facing near-term revenue shortfalls and they simply can’t make payroll. That’s not the case here. But Netflix faces a festering pain point.
\n\nSpecifically, investors are worried about the slowdown in its U.S./Canada region — which has raised questions about its long-term growth trajectory. For the second quarter of 2026, Netflix’s UCAN revenue decelerated from 14% the prior quarter to 10% (partially due to its recent price hikes). The company also issued Q3 revenue guidance below analyst expectations. Shares of Netflix are down 20% year-to-date on fears the streamer’s days…
Original source: https://variety.com/v/tv/