Cordkillers 623: Netflix and Trim

But we'll start, though, with a disaster in the supply run.

Supply run, supply run, supply.

Brian, Netflix did the worst thing you can do in the investing world today when it announced its

earnings.

Surely that's not turn a profit?

Even worse.

Even worse.

It met expectations for Q3 revenue.

What's funny is for a second, I literally didn't know what the answer is.

And like, of course, that would be the worst thing you could

do.

How dare you not exceed expectations, Netflix? It did beat expectations slightly on profit, but that growth is still slower.

They grew by 17% in this quarter last year.

They only grew 11.8% this year.

And they're forecasting the profit will slow more next quarter because they got to pay out severance to the people they just laid off.

And I don't mean the Apple TV show.

Netflix laid off approximately 1,000 people, its biggest staff cuts since 2022.

Most of those cuts affected people in their product, tech, legal, and HR section.

And the problem is because they're not making money as fast.

They need the growth to accelerate, not decelerate.

Netflix has a healthy margin, lots of cash on hand.

So they've got resources, but Netflix said slower growth expectations and declining user engagement were two of the causes of their concern and led them to the need to cut expenses.

They did not blame AI.

That is a common thing these days that companies will say like, oh, because of AI, somehow we had to cut all these people.

On the slow growth part of this, Canada and the US are the problem.