Netflix’s Woes: Major Changes Amid Declining Stock and Layoffs
The stock price of Netflix has plummeted by nearly 50 percent over the past year. To add to the turmoil, 1,000 employees were recently let go, the chief content officer Bela Bajaria is no longer with the company, attention is turning to Netflix Films chairman Daniel Lin, and now, director David Fincher has decided to part ways with the streaming giant.
Fincher, known for his three Oscar nominations and classic films like Seven, Fight Club, Zodiac, and The Social Network, first collaborated with Netflix in 2013, revolutionizing the platform with House of Cards. This moment marked a shift where Netflix began investing in original content instead of relying on acquisitions. Currently, the company spends about $20 billion each year on its own productions.
In 2017, Fincher also delivered the highly praised first season of Mindhunter. However, in 2020, after signing an exclusive deal with Netflix, some felt that Fincher’s creative edge was lost. His two films for Netflix, Mank and The Killer, seemed more like content than artistic cinema. The second season of Mindhunter faced criticism for getting bogged down in trendy identity politics.
Next in line for Fincher is The Further Mis-Adventures of Cliff Booth, a sequel to Quentin Tarantino’s Once Upon a Time in Hollywood. Tarantino wrote the script, and Brad Pitt is set to reprise his Oscar-winning role. This film is expected to be briefly showcased in IMAX theaters next month.
Reports indicate that Netflix has invested around $250 million in this upcoming project. Despite that, Fincher asked for significant funding for reshoots after reviewing the first cut. Lin, who was tasked with cutting costs just two years ago, only approved a small portion of Fincher’s budget request. Consequently, Fincher has decided to exit.
This departure might actually be beneficial for both parties. It seems that Fincher struggled to make a meaningful impact at Netflix, where the company spent exorbitantly without seeing much return.
Netflix appears to be in a state of panic at the moment, as its stock continues to decline, subscriber numbers have plateaued, and it recently lost out on acquiring Warner Bros. In terms of viewership, Netflix now finds itself in second place behind YouTube, capturing 7.8 percent compared to YouTube’s 14.2 percent.
Even more concerning is that the top three free streaming services—Roku Channel, Pluto, and Tubi—are almost matching Netflix’s own 7.8 percent audience share.
So, the once-dominant Netflix faces disruptions from free streaming platforms that rely on ad revenue instead of subscription fees. For contrast, while Netflix raked in $45.2 billion in revenue in 2025, YouTube’s revenue reached an impressive $60 billion, most of which came from advertising.
Last year, Netflix reported a net profit of $11 billion, but it’s unclear how YouTube’s numbers stack up—in all likelihood, they are higher, given that YouTube doesn’t invest $20 billion annually on original content like Netflix does.
Netflix is trying some promising strategies, such as live sports events, but also appears to be making questionable decisions, like getting into the podcasting space. To move forward, it seems that Netflix needs to take two key steps.
First and foremost, the quality of its TV shows and movies needs to see a notable upgrade. Personally, I didn’t cancel my Netflix subscription; it just became hard to ignore how much of the content felt subpar.
Secondly, Netflix should consider monetizing its older library of content that currently sees little engagement, possibly by launching a free streaming channel or licensing its catalog to platforms like Pluto or Roku.
Ultimately, Netflix may face a natural ceiling when it comes to its subscriber base. It appears they might not be as prepared for that possibility as one would expect.
