Netflix’s cuts expose a tougher problem: finding the next hits

Netflix is cutting about 1,000 jobs, or 6% of its workforce, even though the streaming leader remains profitable and expects revenue to grow. The retrenchment follows slower growth in viewing and sales, and a weaker outlook for advertising—signs that the company’s next challenge is no longer simply adding subscribers. Bloomberg’s account frames the deeper concern as a creative slump: Netflix can still spend heavily on shows, films and live events, but it has struggled to produce enough attention-grabbing programming to keep audiences spending more time on the service. Its decision to replace its content chief soon after the layoffs suggests the company sees better programming, not just lower costs, as central to restoring momentum.