Reed Hastings steps down as CEO of Netflix, and Ted and Greg Smith will take over as co-CEOs
- ByStartupStory | January 20, 2023
Reed Hastings has stepped down as the CEO of Netflix after 25 years. He will continue as the Executive Chairman of Netflix. Ted Sarandos and Greg Peters will take over as Co EOs of the OTT platform.
“I’m so proud of our first 25 years, and so excited about our next quarter of a century. “We can do so much more to better entertain the world and deliver more joy to our members,” he shared in a press release.
“It was a baptism by fire, given COVID and recent challenges within our business.” But they’ve both managed incredibly well, ensuring Netflix continues to improve and developing a clear path to reaccelerate our revenue and earnings growth. “So, the board and I believe it’s the right time to complete my succession,” he added.
He further said the board has been discussing the succession for years now. As part of the process, Ted was made the co-CEO alongside Reed in July 2020, and Greg became Chief Operating Officer.
In addition, Bela Bajaria was named Chief Content Officer, and Scott Stuber was named Chairman of Netflix Film. Reed, as Executive Chairman, will devote more time to philanthropy and will continue to monitor the performance of Netflix stock.
The company reported a 1.9% year-on-year increase in fourth-quarter earnings of $785.2 million. It reported a 6.5% increase in revenue over the previous year, totaling $31.62 billion.
Netflix has also witnessed an increase in paid membership, with 230.75 million subscribers as opposed to 223.09 million subscribers in the previous quarter.
In other news, the OTT Platform joined the layoff race, laying off 300 employees, or about 4% of its workforce, as part of its cost-cutting measures.
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