Netflix's third-quarter financial report failed to inspire investors, and this comes just a week after the company made significant adjustments to its content leadership team and carried out the largest layoff since 2022.

The following is a comparison of the financial performance of this streaming giant in the third quarter with the company's guidance:

Before the release of its third-quarter financial report, Netflix's stock price had fallen by more than 44% over the past year. Investors are concerned about the growth in user engagement, as well as the fierce competition from YouTube and other free streaming platforms.

Neflix's performance announcement this time came less than a week after it adjusted its content business leadership team and laid off approximately 1,000 employees.

Netflix announced last week that content chief Bella Bagaria ( Bela Bajaria ) will leave her current position after more than three years in the role. The company also stated on Monday that film business head Dan Lin ( Dan Lin ) will be departing as well.

Bajaria will be succeeded by Peter Rice ( Peter Rice ). Rice has previously served as a senior executive at Fox and Disney, and was in charge of Disney's television business, including ABC and FX. Netflix has not yet announced who will replace Lin; in the meantime, Rice will be responsible for the film business.

This leadership reshuffle comes at a time when Netflix is dealing with a slowdown in growth in viewership. The streaming giant recorded a total of 97 billion hours of viewing time in the first half of this year, a year-on-year increase of 2%.

Ted Sarandos, Co-CEO of Netflix ( Ted Sarandos ), stated at an industry event hosted by Bloomberg last month that Netflix's growth "has not reached the speed I would like, and we are working hard to make this process faster."

Neflix's latest round of layoffs affects its product, technology, human resources, and legal teams. Co-CEOs Salandos and Greg Peters ( Greg Peters ) stated in a memo to employees that the company is downsizing in order to "maintain discipline in the prioritization of personnel and resource allocation."

Other media companies have also carried out layoffs in the past month. NBCUniversal cut hundreds of employees from its global streaming technology team at the beginning of October, while Disney reduced its technology and human resources teams in late September.

In the second quarter, Netflix's performance was roughly in line with analysts' expectations. After the financial report was released, the stock price fell by 8%, and at that time Netflix stated that it would reduce the frequency of disclosing viewing data.