Reed Hastings, who is chairman and co-founder of Netflix, plans to quit the streaming company. Hastings had played a major role in evolution from a postal subscription service to an entertainment giant producing its own content.
“Netflix changed my life in so many ways, and my all‑time favorite memory was January 2016, when we enabled nearly the entire planet to enjoy our service,” Hastings said. Netflix said Hastings’ decision to step down was driven by a desire to focus more on philanthropy and other pursuits.
This comes as Netflix is searching for new avenues of growth, as sales fell because of competition, and the failure of a merger deal with Warner Bros. Discovery. Earlier this year, Netflix walked away from its bid to acquire Warner Bros., refusing to raise its offer and clearing the way for Paramount Skydance to move forward, sending Netflix’s shares higher.
Read: Netflix raises prices again: What subscribers need to know (March 27, 2026)
Netflix co-CEO Ted Sarandos said following the failed bid for Warner Bros, Netflix would “continue to strengthen [its] core offering” but was also pushing into new areas such as video podcasts, live music and expanding its games offering and a new gaming app for kids as well as building up its live sporting events.
Netflix on Thursday forecast earnings per share in the current quarter below analysts’ expectations and quarterly revenue growth that is the slowest in a year, according to LSEG.
However, co-CEO Greg Peters, said that Netflix ended last year with more than 325 million paid members and is entertaining an audience approaching a billion people. “But even given that number, we still have plenty of room to grow into our addressable market,” he said. In a letter to investors, Netflix said Hastings will not stand for re-election at its annual meeting in June and plans to focus on philanthropy and other pursuits. The co-CEO praised Hastings’ leadership style and said his influence would continue to guide the platform.
READ: Netflix pivot: Streaming giant hunts for franchises after losing Harry Potter (April 3, 2026)
“He built a company of risk-takers and a culture where character matters, and nobody rests in the pursuit of excellence,” said Sarandos. “I have loved working with and for Reed through amazing twists and turns in our business, and he has modeled what it is to be a leader and a friend.”
LightShed Partners media analyst Richard Greenfield said “the departure of Reed Hastings has spooked investors.” The company’s stock plunged around 9% on the news of Hastings’ departure.