Netflix scaling back movie output, cuts jobs in restructuring
The streaming service produced more original movies than any other Hollywood company in recent history
Netflix is pulling back the reins on movie production, reducing output and combining units.
The restructuring will help to centralize decision-making, the company said Thursday.
The combining of units that produce small and midsize pictures will result in a handful of job cuts and the departure of two long-time executives, according to Bloomberg.
Lisa Nishimura will be leaving after 15 years at Netflix. She took the company into standup comedy and original documentaries and is responsible for documentaries and smaller-budget films.
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In this photo illustration, the logo of Netflix is displayed on a laptop screen and on a smartphone screen. (Photo Illustration by Soumyabrata Roy/NurPhoto / Getty Images)
Ian Bricke, a vice president in the film group, is also leaving after more than a decade. Bricke helped make The Kissing Booth movie franchise.
"We thank them both for their contributions to making us a world-class film studio and wish them the best for the future," said Film chief Scott Stuber.
He called Nishimura "a champion for inclusion on and off screen."
Stuber thanked Bricke for his work on an emerging filmmaker initiative.
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The streaming service has released more original movies than any other Hollywood company, producing more than 50 projects a year.
Cutting back on releases is aimed at producing more high-quality titles.
A handful of Netflix films have won Oscars like All Quiet on the Western Front, which won the best international film this year.
(L-R) Christian M. Goldbeck, winner of Best Production Design award, Edward Berger, winner of the Best International Feature Film award and James Friend, winner of the Best Cinematography award, each for "All Quiet On The Western Front" attend the Go ((Photo by Emma McIntyre/Getty Images) / Getty Images)
Netflix created multiple divisions responsible for movies at different price points.
The independent film group makes smaller budget movies around $30 million or less.
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Netflix Executive Scott Stuber (REUTERS/Henry Nicholls / Reuters Photos)
Another group makes mid-budget films between $30 million to $80 million.
There's a unit for bigger-budget films as well.
The units basically operated independently, with executives making movies without checking with their superiors.
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| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| NFLX | NETFLIX INC. | 823.96 | -13.30 | -1.59% |
Stuber is now centralizing more decisions and trying to get more of his executives to collaborate.
The company reports quarterly results on April 18.
Netflix closed 2022 with almost 231 million paying customers.