Netflix is restructuring its film units and vowing to make fewer but better movies, according to a new report from Bloomberg, which Netflix partially confirmed. The report said the streaming giant is combining film units that produce small and midsize films, resulting in a handful of layoffs, including two longtime executives. Netflix told TechCrunch that these changes were made to simplify its structure and set it up for the next phase of its growth, but declined to comment on how many people were being let go.
Scott Stuber, chairman of Netflix Film, has been looking to scale back the company’s output of films to ensure that more of them are high quality, according to the report.
It appears that this change has already been implemented, as the report comes as Netflix recently revealed its 2023 original films lineup, which consists of 49 titles. In comparison, the company had 85 original films in its lineup last year. For context, a Netflix original refers to both the content that has been produced in-house and the content to which it owns the distribution rights. It’s unclear for now if Netflix would also be scaling back the addition of originals that it didn’t produce, but obtained the rights to — a move that would impact the output of new originals on the service.
One of the executives leaving the company is Lisa Nishimura, who was behind the company’s foray into standup comedy and original documentaries, Netflix confirmed. Nishimura had worked on some of Netflix’s most popular titles, including “Making a Murderer,” “Power of the Dog” and “Tiger King.”
Ian Bricke, who served as the vice president of Independent Original Film at Netflix, will also be leaving. Bricke played a big part of Netflix’s dominance in the rom-com space, as he spearheaded notable titles like “The Kissing Booth,” “Set It Up” and “To All the Boys I’ve Loved Before.”
“Lisa Nishimura joined Netflix in the DVD days, and as the company moved into streaming, she built our original documentary and stand-up comedy divisions from the ground up, and established Netflix as a powerhouse in both spaces,” Stuber said in an emailed statement. “Ian Bricke has been at the company for more than a decade, building and leading our independent film team, attracting filmmakers like Tamara Jenkins, Nicole Holofcener, and Mark and Jay Duplass. We thank them both for their contributions to making us a world-class film studio and wish them the best for the future.”
The handful of layoffs come after Netflix conducted a series of job cuts last year. In May 2022, the company laid off approximately 150 staffers. A month after that, the company laid off 300 more people, which represented 3% of its workforce at the time. Netflix then laid off another 30 employees in September who were part of its animation department.
On the editorial side, Netflix laid off 25 people on its editorial staff just five months after launching its in-house Tudum publication.
Earlier this year, Netflix boasted to shareholders it has successfully scaled its decade-long original programming initiative.
“Now that we are a decade into our original programming initiative and have successfully scaled it, we are past the most cash-intensive phase of this buildout,” the company wrote to shareholders. “As a result, we believe we will now be generating sustained, positive annual free cash flow going forward.”
Netflix is scheduled to report Q1 2023 results on April 18.
Source: Tech Crunch