Netflix Replaces Content Chief After 6% Layoffs and Failed Warner Bros. Bid

Netflix named former Disney executive Peter Rice as its new Chief Content Officer, a move that follows the dismissal of several senior leaders and the layoff of 6% of its global workforce this month. Rice, who previously headed content at Fox and Disney, begins his role on Monday, succeeding Bela Bajaria, whom the company announced is leaving.

The executive turnover occurred as the Los Gatos-based streaming service grappled with slowing subscriber growth and a failed $82.7 billion bid to acquire Warner Bros. late last year. The collapse of that deal caused a sharp drop in Netflix’s stock price and heightened investor scrutiny over the company’s strategy. Netflix now has more than 325 million subscribers but faces saturation in the U.S. market, where finding new customers has become increasingly difficult.

Internal friction has grown between the company’s Hollywood-based content executives and its Silicon Valley technology teams, according to former employees and industry insiders. Tensions escalated after co-founder Reed Hastings stepped away from management in January 2023, leaving Ted Sarandos and Greg Peters to share the role of chief executive. The dual-CEO structure has led to conflicting messages and strategic missteps, including a costly foray into video games.

Sarandos, 62, oversees the company’s $20 billion programming budget and has driven expansion in Hollywood. Peters, 55, a former chief operating officer with a background in physics and computer science, has focused on technology and business diversification. A person close to the company disputed the existence of a deep cultural divide, stating that Sarandos and Peters debate decisions but recognize that neither great content nor great technology succeeds without the other.

Specific disputes have arisen over operational control. Tech employees were surprised when Sarandos’ team signed a deal to stream 2024 NFL Christmas Day games without consulting product executives, whose staff would provide technical support. The issue was highlighted by technical difficulties during the Mike Tyson and Jake Paul fight in November, although the NFL broadcast proceeded without major glitches. Additionally, disagreements have emerged over marketing control, with Sarandos granting the marketing team more authority over promotional assets, a shift from the previous system where the product team managed trailers based on consumer data analysis.

The companies’ gaming strategy has also been a source of conflict. Peters championed the expansion into games, leading to the acquisition of several studios beginning in 2021. However, Netflix recently closed its Hollywood-based Night School and Finland-based Moonloot studios, following the earlier shutdown of Boss Fight Entertainment in Allen, Texas. Sarandos has argued that the tech teams were giving games too much attention, creating confusion among staff regarding operational priorities.

Leadership disagreements also impacted the 2025 deal with French broadcaster TF1. Peters pushed for the partnership to bring TF1’s free channels to Netflix in France, a move Sarandos initially opposed. The debate delayed the launch, but the partnership has since been considered a success that Netflix intends to replicate with other partners. Only about 1% of the largest 3,000 U.S. publicly traded companies use a co-CEO model, a structure that management professor Henning Piezunka of the University of Pennsylvania’s Wharton School described as powerful because it allows two intelligent leaders to battle out decisions rather than relying on a single individual.