Netflix Faces Internal Revolt as Executives Target Co-CEO Ted Sarandos

Netflix is facing internal turmoil as former and current executives organize behind the scenes to challenge Co-CEO Ted Sarandos, following a dramatic wave of layoffs and high-profile departures.

The discontent stems from recent months, which saw the ousting of Chief Content Officer Bela Bajaria and Film Head Dan Lin, alongside the elimination of roughly 1,000 jobs. While some disgruntled insiders worry about falling stock prices, others argue the streaming giant has lost its unique cultural identity and creative edge.

Hollywood Shift Sparks Criticism

Critics claim that Sarandos has steered Netflix too close to the traditional Hollywood studio model, favoring high-budget productions and major stars over the aggressive, data-driven culture established by co-founder Reed Hastings. The appointment of former Fox and Disney executive Peter Rice to replace Bajaria has only fueled these concerns, though supporters believe Rice's industry connections could help mend relationships with top creators.

Tensions have also flared over the handling of Bajaria's exit, with reports indicating she was asked to execute mass layoffs shortly before being dismissed herself. Insiders argue this contradicts Netflix's long-standing corporate principles of radical transparency and honesty.

The Search for Leadership Change

According to reports from Deadline and Puck, frustrated executives have been holding informal meetings in Los Angeles to discuss potential strategies, including lobbying Hastings to intervene with the board. However, Hastings recently expressed confidence in the current leadership team.

While Netflix remains highly profitable with strong operating margins, critics warn that a decline in cultural relevance and creative stagnation could pose long-term risks in an increasingly competitive streaming market.