Netflix co-founder Reed Hastings steps down as CEO after nearly 25 years

Reed Hastings is stepping down as CEO of Netflix effective immediately. He says now is “the right time” to pass the baton after nearly 25 years as the company’s chief executive. Ted Sarandos will remain co-CEO and Greg Peters will be the second co-CEO.

Hastings says years working on his succession. Therefore, in July 2020, Sarandos was appointed co-CEO and Peters became chief operating officer. In recent years, Hastings has shifted more and more tasks to these two. Now that Netflix has chosen “a clear path to accelerate our revenue and profit growth again,” Hastings said, now is the right time to make way for its successors, the co-founder said. He says that this decision was made together with the board of directors.

The ex-CEO does not leave the company, but remains involved with Netflix as executive chairman. In that role, he says he wants to play a bridging role between the board of directors and the two CEOs. He also wants to spend more time on philanthropy and says to “stay focused on Netflix’s stock market value continuing to do well.”

According to Hastings, Sarandos played a major role in developing Netflix’s plan to make more of its own TV series and films. In recent years, Peters has focused on Netflix advertising, personalizing Netflix and partnering with third-party companies. Bela Bajaria becomes the new coo of the company.

Netflix has grown under Hastings’ leadership from a DVD rental company to the global streaming service it is today. Hastings was not the first CEO, but took over that role in 1999 from the other co-founder, Marc Randolph. Until the beginning of 2022, the number of Netflix subscribers only increased, but that growth is now lagging behind Netflix’s goals. To turn the tide, Netflix wants to prevent account sharing and introduce advertising subscriptions, among other things.