Reed Hastings steps down as Netflix CEO as company posts subscriber gains

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Netflix shares rise in after-hours trading after CEO Reed Hastings steps down

Netflix Inc co-founder Reed Hastings announced on Thursday he will step down as chief executive, handing the reins of the streaming service to his long-time partner and co-CEO, Ted Sarandos, and the company’s chief operating officer, Greg Peters.

Sarandos and Peters will share the title of chief executives, with Hastings serving as executive chairman. The change is effective immediately, representing the culmination of a decade of succession planning by the board. Both Peters and Sarandos were promoted in July 2020, amid a challenging time for the company.

Hastings made his exit as Netflix reported it added 7.66 million subscribers in the fourth quarter, beating Wall Street forecasts of 4.57 million with help from “Harry & Meghan” and “Wednesday” in the battle to attract streaming television viewers. Netflix lost customers in the first half of 2022. It returned to growth in the second half, but new customer additions remains below the pace of recent years.

 

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