Sarandos says Netflix needs better US execution, backs Peter Rice to deliver it
Key Takeaway: Netflix co-CEO Ted Sarandos told analysts the streamer’s strategy needs no fundamental shift but it needs better execution in the US, backing incoming content chief Peter Rice on the Q3 earnings call.
The Hollywood Reporter reported that Netflix co-chief executive Ted Sarandos said the streamer’s growth strategy needs no fundamental shift, but it needs better execution in the US. Sarandos spoke on the company’s third-quarter earnings call on Tuesday.
Sarandos backed incoming chief content officer Peter Rice to deliver it, praising his talent relations above all. Rice, the former Disney and 21st Century Fox executive, was hired last week to replace Bela Bajaria and starts on Oct 26.
The message
Netflix’s growth strategy is sound, with international content largely working, but the US business is not growing as fast as it could. Rice is expected to blend art and commerce in re-orienting film and television operations and can have an impact on fourth-quarter and 2027 titles even in the short term.
Sarandos also praised the ousted Bajaria for putting a lot of hits on the board and building the international team behind local content.
“We do need better execution in the U.S. Our content around the world is largely working. The U.S. is also working. It’s just not growing as fast as it could or as fast as we’d like.”
Ted Sarandos, co-CEO, The Hollywood Reporter
The shakeup
The leadership change came alongside a 1,000-person layoff, 6 per cent of the workforce, including senior executives. with co-chief executive Greg Peters attributing it to overinvestment in some areas built quickly during years of top-line growth.
Netflix posted solid July-to-September results, but lower fourth-quarter and full-year guidance spooked investors, with shares down about 5.8 per cent in after-hours trading.
“Most importantly, Peter Rice understands talent relations.”
Ted Sarandos, co-CEO, The Hollywood Reporter
Key Story Metrics
| Figure | Reported Status |
|---|---|
| Rice start date | Oct 26 (THR) |
| Bajaria tenure | 10 years (Deadline) |
| Layoffs | 1,000 (6%) (THR; Deadline; Variety; TheWrap) |
| After-hours share move | -5.8% (TheWrap) |
| Sarandos-Rice relationship | ~15 years (Variety) |
✓ Verified
• Q3 2026 earnings call (Oct 20, 2026): growth strategy needs no fundamental shift; US needs better execution (THR; Deadline; Variety; TheWrap).
• Peter Rice hired as chief content officer, replacing Bela Bajaria (10-year veteran, let go); starts Oct 26 (THR; Deadline; Variety).
• Sarandos praised Rice’s talent relations above all (THR).
• Layoff of 1,000 employees (6% of workforce); overinvestment in some areas (Peters via THR; Deadline; Variety; TheWrap).
• Shares fell about 5.8% after hours on soft Q4 guidance (Deadline; TheWrap).
⚠ Still needs confirmation
• The ousters of Dan Lin, Doug Belgrad and Carolina Garcia are single-sourced to Variety.
• Rice’s Fox Searchlight credits (Juno, Little Miss Sunshine, Sideways) are background from Variety/Deadline/TheWrap.
Frequently Asked Questions
What did Sarandos say about Netflix’s US business?
The strategy is sound but needs “better execution” in the US.
Who is Peter Rice?
The former Disney/21st Century Fox executive hired as chief content officer; he starts Oct 26.
Who did Rice replace?
Bela Bajaria, a 10-year company veteran who was let go.
How big was the layoff?
1,000 employees, 6% of the workforce.
Editor’s note: Rice starts as chief content officer on Oct 26; the earnings call was held Oct 20, 2026.
