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In yesterday’s newsletter, I made a lengthy case for considering an upgrade to a paid subscription. But as several of you brought to my attention, I also neglected to add a link to upgrade your subscription.
Today’s official announcement of the Netflix layoffs that I first reported on October 1st is a reminder that my work is worth investing in and supporting.
If you are able to upgrade your subscription, here is the link to do so.
Netflix’s Layoff Plans Come Into Focus as Cuts Are Confirmed
Netflix is eliminating roughly 1,000 jobs worldwide, or about 6% of its workforce, in its largest round of layoffs since 2022, according to The Wall Street Journal. The reductions come less than a week before the streaming company is scheduled to report its third-quarter results, putting renewed focus on its growth prospects, spending priorities and efforts to expand beyond subscription streaming.
“Our business is strong and growing, and we remain on track to deliver our full- year forecast,” Co-CEOs Ted Sarandos and Greg Peters wrote in the memo. “We’ll continue to invest aggressively in high- impact areas to improve our service and further drive growth and innovation. Doing that means making focused choices across the business so we can keep delivering for our members, partners, employees, and investors,” they said. They called the current media landscape “perfectly suited to a company like ours that’s built at the intersection of technology and entertainment. Now it’s on us to step up and meet the moment.”
Despite that rosy framing, data from Apptopia reports Netflix saw a 16.6% spike in subscriber churn (members who do not renew) in the third quarter, ended Sept. 30. That number is double the 7.8% churn in Q2, and underscores a seven-quarter consecutive churn increase.
The company is expected to release its quarterly results on Tuesday, Oct. 20, after the market closes. Wall Street analysts are forecasting revenue of approximately $12.87 billion and earnings of about 82 cents per share, according to MarketBeat estimates. Those projections imply revenue growth of nearly 12% from the year-earlier period. Netflix’s earnings report and management commentary will offer investors a fresh look at the performance of its core streaming business and the progress of newer initiatives, including advertising, gaming and live programming.
According to the Journal, co-CEOs Greg Peters and Ted Sarandos notified employees of the job cuts in an email Wednesday morning. Product, technology, legal and human resources are expected to account for much of the reductions.
The report follows my October 1st coverage, which first reported that Netflix was preparing for a major layoff round that could affect as many as 1,000 employees. At the time, sources described a combination of slowing engagement, pressure on the company’s stock and a broader effort to redirect resources from businesses that executives believed were not delivering sufficient returns.
The timing puts the workforce reductions in the spotlight ahead of Netflix’s earnings announcement, although the cuts should not be taken as evidence that the company has missed its financial targets. Netflix said in its second-quarter results that it remained on track with its 2026 financial plan. In the third quarter, investors will be watching for signs that revenue growth, advertising and other initiatives can sustain the company’s momentum while it exercises greater discipline over costs. In its most recent reported quarter, Netflix generated $12.56 billion in revenue, up 13.4% year over year, but fell slightly short of analysts’ expectations.
One area facing questions is Netflix’s push into physical experiences. Greg Lombardo, who led the company’s retail efforts, including its Netflix House attractions in Philadelphia and Dallas, is leaving after seven years. His departure followed the exit of Pam Levine, Netflix’s former vice president of marketing and publicity for the U.S. and Canada.
In earlier reporting, I heard from sources inside Netflix who viewed the company’s retail and experiential businesses as having potential but said it had yet to demonstrate returns sufficient to justify the investment. The earnings report may not resolve the longer-term question of how Netflix intends to measure the value of those ventures, but its broader spending priorities are likely to remain under scrutiny.
Gaming is another part of Netflix’s expansion that has faced challenges. Despite investments intended to establish the company in a crowded market, Netflix has not yet built a games business on the scale of its streaming operation. The company closed its Hollywood-based Night School Studio in August and announced plans to close its Helsinki-based Moonloot studio. My earlier reporting indicated that additional changes within the division were possible.
More broadly, Netflix is competing for viewers’ time as YouTube takes a larger share of U.S. television viewing and rival streaming services continue to pursue audiences. Netflix has responded by broadening its programming mix to include live events, sports, video podcasts and games, seeking both to deepen engagement with existing subscribers and develop additional sources of revenue.
At Bloomberg’s Screentime conference, Sarandos acknowledged that Netflix was not growing as quickly as he wanted. That challenge forms part of the backdrop to the upcoming results: investors will be looking not only at quarterly revenue and earnings, but also for evidence that Netflix’s expanding slate of offerings can translate into durable growth.
The latest cuts also recall Netflix’s 2022 restructuring, when the company eliminated hundreds of jobs during a difficult period for the streaming business. In my initial report on the current round, sources described the prospect of a broader strategic reset, rather than a move focused solely on reducing headcount.
Netflix has continued to invest in new programming and business lines, but the layoffs and recent leadership departures suggest it is taking a closer look at where those investments are producing results. With its third-quarter report approaching, the company faces a dual test: delivering on its financial outlook while convincing investors that its next phase of expansion can support growth without adding unnecessary costs.
A QVC Legend Looks Back Before Signing Off
This year marks the 40th anniversary of QVC, the home-shopping network that turned live television retail into a distinctly personal form of entertainment. To mark the milestone, the company has released A QVC Story, a multipart documentary tracing four decades of memorable moments, bold ideas and retail innovation. Hosting the series is longtime QVC personality Rick Domeier, who is preparing to retire in December after more than 30 years on the air.
I had the opportunity to have an extended conversation with Rick about the special, his time on the air and QVC’s strong connection with its viewers.
You can read the entire interview here, but here is an excerpt of the conversation:
Ellis: It’s interesting that you mentioned your dad because I wanted to ask you about him. Reading your book and looking at other interviews you’ve done, you’ve talked about the impact he had on you, the things you learned from him. I’m at an age now where my son - I have a special needs son. He’s 21 and I start to wonder about what’s he going to think of me when I’m gone? What are the lessons he learned from me?
I wonder what are the lessons that you hope your family have learned from you, from watching you on TV, from watching you handle life with all these people running up to you?
Rick Domeier: You didn’t warn me that this was going to happen. You didn’t tell me I was going to need the Kleenex box. I was just going to talk about the job and the documentary.
Ellis: You brought it up.
Rick Domeier: I did. It’s my own fault. It’s so meaningful.
The legacy that my father left me is as someone who served in World War II, who lost two brothers in the war, their purple hearts are behind me right now. I’ll give that legacy to my boys and to share that through line. I hope they realize that their dad did a good job, that he showed up, that he continued to evolve.
As I retire now in December, I hope that they know that to be everywhere, both at work and at all of their games, it’s sometimes not possible. Sometimes there’s a 24/7 aspect of QVC where you’re working on Memorial Weekend, where you’re working on the 4th of July. For my wife, I’m sorry, I’ve got to kick off the Today’s Special Value. You know what it is? It’s Black Friday. What does that mean? It means I have to go in on Thursday. You know what Thursday is?
Ellis: It’s Thanksgiving.
Rick Domeier: I have to go in that night. The sacrifices had to be made. I pray that they know that their old man tried to be there whenever he could at those big events, those big moments. I hope it’s a happy ending to this chapter. It’s a very important chapter. As I wrap up part four of this job, narrating this documentary, it’s been quite a year, 40 years of watching this evolve, narrating it, and also now coming to the end of my career. It’s emotional. It’s big.
Please go read the entire thing, even though the Forbes web site can be a bit clunky. It’s an example of my favorite kind of interviews. It’s an extensive, free-wheeling conversation that allows readers to really get a sense of who Rick is away from the cameras.
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ICYMI: Just Posted On TooMuchTV And Forbes
Here is a rundown of other stories recently posted on TooMuchTV.com and Forbes:
Minnesota Wild fans are bringing their phones (or even laptops) to the bar to watch the game. That’s because the hockey games are only available on Wild+, which businesses can’t subscribe to through Amazon Prime.
The BBC is developing a two-part documentary titled J.K. Rowling about the author's rise to global prominence and her controversies.
What’s Coming Tonight And Tomorrow
WEDNESDAY, OCTOBER 14TH, 2026:
Helluva Boss Season Three Premiere (Prime Video)
Houdini: Back From The Dead (Fox Nation)
Love Is Blind Season Premiere (Netflix)
Love Of Your Life (Prime Video)
Mike Judge's Beavis And Butt-Head (Comedy Central)
Secrets Of The Dead: Africa’s Golden City (PBS) - (trailer)
The Lowdown Season Two Premiere (FX)
THURSDAY, OCTOBER 15TH, 2026:
Crystal Lake Series Premiere (Peacock)
Hollywood Arts Season Premiere (Netflix)
The Diplomat Season Four Premiere (Netflix)
The Storm (Netflix)