happened

It was a crowning moment. Netflix appeared to have prevailed in an audacious $82.7-billion deal to scoop one of the industry’s most prestigious studios: Warner Bros. The move seemed to cement Netflix’s status as the ultimate Hollywood gate-crasher and its dominance as the leading new player in media.

Now, nearly a year later, the plotline for Netflix has dramatically changed. The streaming giant lost out to Paramount Skydance in its bid for Warner Bros. Discovery and is facing headwinds on multiple fronts.

That was underscored this week when the streaming giant Netflix began shedding 6% of its workforce, or about 1,000 jobs — believed to be the largest layoff in the company’s history and exceeding the last round of job cuts in 2022, when it reported subscriber declines.

On Wednesday morning, Ted Sarandos and Co-Chief Executive Greg Peters sent a note to employees confirming the job losses, adding that the bulk of the cuts would affect the tech, product, legal and human resources teams.

“Our mission — to entertain the world — is ambitious, and delivering on it requires us to be disciplined about where we prioritize our people and resources,” wrote Sarandos and Peters in the memo obtained by The Times.

The cuts mark the latest reductions across the film and TV industry. Other entertainment and media companies have slashed their payrolls, including Walt Disney Co., Paramount and Sony Pictures Entertainment during a period of economic uncertainty in Hollywood.

But the scale of such downsizing is unusual for Netflix. Industry analysts and insiders chalk up the reversal of fortune to several factors. Although it still dominates the television business, the Los Gatos company hasn’t been able to produce enough new hit franchises to replace culture-defining shows from years past such as “Stranger Things” and “Squid Game.”

At the same time, Netflix faces rising competition from rivals such as HBO Max, Apple TV, Hulu and others that have upped their game. Free, ad-supported streaming platforms such as YouTube are increasingly taking a larger slice of consumer streaming hours. And Netflix’s efforts to diversify its business into new areas such as games have yielded mixed results.

A Netflix building on Sunset Boulevard in Los Angeles in 2025.

(Myung J. Chun / Los Angeles Times)

The upshot: Netflix continues to be the dominant video subscription streaming player with more than 325 million subscribers, but the time that consumers spend on the platform is growing at a slower pace than what investors want. In the first half of this year, consumer watch time on Netflix increased only 2% compared with a year earlier, even as content spending increased 11% to $20 billion this year. Netflix also narrowed its annual revenue forecast last summer, disappointing some investors.

“Netflix’s layoffs show that even the top streaming companies are not immune to stagnation and financial difficulties,” said Ross Benes, senior analyst at research firm Emarketer.

Amid the sobering signs, investors have grown restless. Netflix shares, which closed at $70.57 on Wednesday, have plummeted 42% in the last year. Part of that decline was fueled by anxiety among investors over Netflix’s deal to buy Warner Bros. Discovery, but the share price hasn’t rebounded even after that deal fell apart.

“They need to better prepare their balance sheet and economics since engagement has plateaued,” said Brandon Katz, director of insights and content strategy at Greenlight Analytics.

Katz said that Netflix’s five most-watched English-language scripted summer movie releases in their first eight weeks posted the lowest average hours watched compared with the streamer’s top five summer releases in 2025, 2024 and 2023, citing Nielsen data.

Sarandos acknowledged concerns about engagement at a Bloomberg Screentime event Sept. 30.

“Overall we’re not growing as fast as I want us to, and we’re working on making that move faster,” Sarandos said.

Netflix declined to comment on the layoffs.

“We’ll continue to invest aggressively in high-impact areas to improve our service and further drive growth and innovation,” Sarandos and Peters said in their memo to employees.

In some ways, Netflix has been victim of its own success. It has produced a string of shows and movies that have hit the cultural zeitgeist such as “KPop Demon Hunters” and “Squid Game.” But finding enough new popular shows that continue to drive subscriptions has been a challenge.

“A lot of these major hits are coming to an end at similar times, and they don’t yet really have heir apparents to replace them,” Katz said.

Sci-fi hit “Stranger Things” released its finale last year, followed by the young-adult drama “Outer Banks” and “Emily in Paris,” which ends this year. Netflix also announced that “The Witcher” and “The Lincoln Lawyer” will wrap after their next seasons.

What’s more, the second seasons of some shows with big followings have seen large view drop-offs compared with their first seasons. For example, the fantasy series “Avatar: The Last Airbender” season 1 debuted with 21.2 million views, but views for its second season dropped 59% to 8.7 million, according to Netflix data.

New series from Netflix also haven’t captured as much consumer demand as other competing shows from rival streamers, according to Parrot Analytics.

Last year, Netflix had just one show — the Japanese anime and manga series “Sakamoto Days” — that made it in Parrot’s top 10 list of first season original series on streaming platforms. Parrot’s ranking measures consumer demand in the U.S. and is based on digital interactions such as social media chatter and Google searches. By comparison, Netflix had three titles in 2022 alone: the true crime show “Monster,” the documentary series “Harry & Meghan” and the sci-fi mystery show “1899,” Parrot said.

Sarandos told investors in July that such declines are typical and that second season falloff is slightly improved this year. But popular shows on rival streaming services such as the medical drama “The Pitt” on HBO Max have not seen such declines. “The Pitt” drew even more viewers in its second season than the first.

To diversify its business, Netflix has expanded its programming offerings beyond TV shows and movies to include live sports, such as football and baseball games.

Although live programs have helped to spur significant subscription sign-ups, they still represent just 1% of watch time on Netflix while costing 5% of the company’s content budget, Sarandos has said.

Netflix also has added video podcasts that have helped to boost daytime viewing on the platform, and has made deals with YouTube creators to bring their content to the streaming service.

But some of the new content hasn’t clicked, particularly in games, analysts said. In August, Netflix shut down Hollywood-based Night School, the maker of supernatural adventure game “Oxenfree,” and said it was closing a Helsinki-based games studio.

“They are spending on a lot of things that haven’t necessarily proven to be effective yet,” said Rob Rosenberg, a partner at law firm Moses & Singer and former Showtime Networks general counsel. “It feels a lot like they’re trying to send a message to Wall Street that ‘we’re re-examining how we do business.’”

Meanwhile, Netflix continues to face more competition from rivals such as YouTube, which offers a free, ad-supported version of its video library.

Unlike Netflix, YouTube does not pay for the creation of many of the videos on its platform. Instead, creators or companies upload and produce the programs themselves and YouTube shares ad and subscription revenue.

YouTube’s share of streaming watch time in the U.S. on TVs has steadily increased. In July, YouTube represented 14.2%, compared with Netflix’s 7.8%, according to Nielsen.

The pressure to boost engagement on Netflix has caused tension within the company, particularly between the teams of people responsible for how programs are promoted on the platform and the employees responsible for bringing shows and movies on Netflix, according to people familiar with the matter who were not authorized to speak publicly.

Some blame the content for not being enticing enough, while others contend that the programs could be promoted better on Netflix.

“It’s a bit of a quagmire,” said one of the sources familiar with the matter. “There is a tension when things aren’t working. People tend to point fingers.”

In their staff memo, Sarandos and Peters said Netflix is on track to deliver its full-year forecast and will continue to invest in areas that improve its service and drive growth and innovation.

“Doing that means making focused choices across the business so we can keep delivering for our members, partners, employees, and investors,” they wrote.

Despite the downsizing, Netflix remains highly profitable. In the second quarter, the company generated $3.4 billion in net income, up 9% from a year earlier. Revenue rose 13% to $12.6 billion last quarter, including double-digit revenue growth in all of its regions. Next week, the company will share its third-quarter results.

The streamer is expected to get a boost from new seasons of popular shows — including season 4 of the political drama “The Diplomat” and spy series “Lupin: Part 4,” as well as Thanksgiving Eve and Christmas Day NFL games.

Having new seasons of popular shows such as “Lupin” and “The Diplomat” will help boost Netflix’s engagement, said Alejandro Rojas, vice president of applied analytics at Parrot Analytics.

“The new season is like a catalyst for people to watch the previous seasons,” Rojas said.

On the theatrical side, Netflix also has high hopes for upcoming movies including La Bola Negra, starring Penelope Cruz; and “The Further Mis-Adventures of Cliff Booth” featuring Brad Pitt. Next year, Netflix will release the Greta Gerwig-directed film, “Narnia: The Magician’s Nephew” on Imax screens.

Netflix has not signaled any changes to its strategy for releasing movies or TV shows. But some analysts said it could benefit from having more theatrical releases and by dropping episodes of shows once a week, instead of all at once, to generate more buzz for programs. They also expect that Netflix will be more disciplined in its content spending.

“While the company will expand its sports roles, it’s cutting back at a time when revenue matters much more than subscriber additions,” said Benes of Emarketer. “With pressure mounting, Netflix will look to turn the tide by getting a boost from low-cost content. The battle for top creators will become more pitched.”

Times staff writer Samantha Masunaga contributed to this report.

While Liverpool have won twice on their travels this season, they now sit ninth in the league – and their main issue seems fairly clear.

They have scored just seven goals this season – just twice at Anfield – and only seven teams have managed fewer.

It was early on in the first half when the cameras panned to Alexander Isak, Cody Gakpo and Dominik Szoboszlai in the Main Stand at Anfield – all three of them were out with injuries.

Among them, the trio have scored six of Liverpool‘s seven league goals this season and on a day when Man City’s attack showed their class, Liverpool didn’t show any quality in the final third.

City (16) have scored more than double the goals Liverpool (7) have scored this season in the top flight.

Across three league games at Anfield this season, Liverpool have failed to score in two of them. That must improve.

In Isak’s absence, Lewis Koumas put in a great shift. However, the 21-year-old lacks that killer edge in front of goal at this level.

The focus must fall on summer signings Florian Wirtz and Bradley Barcola. It is this kind of game where you need a match-winning moment and neither showed anywhere near the quality that is expected when you have a price tag of over £100m.

There was one moment at 0-0 in the 55th minute when Wirtz had Milos Kerkez and Barcola in acres of space to his left, but chose to shoot and fired wide.

“You learn a lot in games like today,” Iraola said. “I am very proud of my players. They put the work rate and everything in today. It’s a loss and we didn’t get anything from the performance but I liked it a lot.”

But deep down, Iraola will know there is a lot of work to do and getting the big money signings to deliver will be high on his agenda.

The U.S. Air Force’s scramjet-powered Hypersonic Attack Cruise Missile (HACM) has finally reached the flight test phase, with at least one “release” having been carried out so far over a range in Australia. HACM has suffered significant delays, and the Air Force has taken the risky step of scaling back overall testing plans to try to keep the program on schedule. The stated goal is to be able to make a decision to start rapidly acquiring HACMs in 2027.

The Air Force has been working on HACM in cooperation with the Royal Australian Air Force (RAAF). The program has been conducted, in part, under the broader umbrella of the U.S.-Australian Southern Cross Integrated Flight Research Experiment (SCIFiRE). The Defense Advanced Research Projects Agency’s (DARPA) Hypersonic Air-breathing Weapon Concept (HAWC) project also fed into HACM. Raytheon (now formally RTX), in cooperation with Northrop Grumman, was chosen to develop the missile in 2022. The weapon has reportedly been designated AHM-4A in a new branch of the U.S. military’s joint service nomenclature system for aircraft and missiles.

“The U.S. Air Force, in partnership with Australia, has conducted a flight test of the Hypersonic Attack Cruise Missile (HACM) as part of our continuous work to advance long-range strike capabilities,” an Air Force spokesperson confirmed to TWZ today. “This effort is part of the Southern Cross Integrated Flight Research Experiment (SCIFiRE), a collaborative agreement built on more than 15 years of partnership between our two nations.”

“Leveraging this enduring alliance, the Royal Australian Air Force executed the release of a HACM flight test unit over a designated Australian test range, gathering crucial data to advance the program’s objectives,” the spokesperson added. “The flight was the culmination of an extensive series of tests designed to measure the missile’s performance under realistic flight conditions.”

The spokesperson did not name the test range where the “release” was conducted or say when that occurred. Whether the missile flew under its own power for any amount of time after release is unknown. What aircraft was used to carry the missile aloft is also not known. TWZ has reached out for more information.

The Air Force did say previously that it planned to conduct HACM launches in Australia. The expectation has long been that this would be done at the country’s sprawling Woomera Test Range, which provides an ideal location for extended-range flight testing activities in general. The U.S. and Australia have partnered on other hypersonic testing at Woomera in the past, as seen in the video below. The remote inland location of the range complex makes it well suited for conducting more sensitive tests away from prying eyes, as well.

HiFiRE 5B rocket reached Mach 7.5

The Government Accountability Office (GAO), a Congressional watchdog, has also reported in the past that RAAF F/A-18F Super Hornets would be used to conduct at least some of the HACM test launches. This would fit with today’s statement from the U.S. Air Force saying that it was the RAAF that “executed the release.” The Air Force’s initial launch platform is the F-15E Strike Eagle, though others are expected to follow.

To date, neither the Air Force nor Raytheon has released a confirmed picture or rendering of HACM. In 2023, the Air Force did release a picture, seen below, showing an air-breathing hypersonic cruise missile test article related to either HACM or the preceding HAWC effort.

“The missile consists of two stages, a rocket booster and a scramjet cruiser, which separates from the booster and eventually dives toward its target,” according to GAO. Scramjets do not function effectively at lower speeds, and designs powered by them require some form of initial boost to a high Mach velocity. Hypersonic speed is generally defined as anything above Mach 5, but what HACM’s peak speed might be is unknown.

Two-stage air-breathing missile-like hypersonic vehicle designs have been tested on several occasions in the past. This includes Boeing’s scramjet-powered X-51 Waverider and HyFly 2 hypersonic test vehicles, among others. The X-51 (as its name indicates) and HyFly 2 also notably had so-called ‘waverider’ configurations designed to ‘skip’ on the shockwaves generated during high-speed flight to help provide additional lift. Whether HACM might also use this principle is not known.

X-51A WaveRider Scramjet Second Hypersonic Flight Test

It’s also worth noting here that Castelion’s Blackbeard hypersonic missile also has a two-stage configuration. It remains unconfirmed whether or not the second stage of that weapon is powered, but it does not appear to be an air-breathing design either way. Castelion is currently developing an air-launched version of Blackbeard for the U.S. Navy, which is also in flight testing now, as well as a ground-launched type for the U.S. Army. You can read more about that missile here.

Scramjet-powered air vehicle designs, including aircraft and missiles, have historically proven challenging. As noted, HACM has suffered delays over the years. The original goal had been to begin flight testing in 2024, which slipped first to 2025 and then 2026.

“The HACM program is on track to conduct its first flight test in the second quarter of fiscal year 2026, but officials said there is effectively zero margin left in the schedule for the rapid prototyping effort. The program has already descoped the rapid prototyping effort from seven to five planned flight tests,” GAO said bluntly in a report published in July. “The Air Force plans to produce 13 missiles during the rapid prototyping effort, including test assets, test spares, and operational rounds.”

“If a significant flight test failure occurs, it is likely that the program will not be able to complete all five tests within the 5-year rapid prototyping timeframe,” the report continued. “According to the program, completing at least the first three flight tests is critical for informing the Air Force’s decision to initiate a rapid fielding effort and procure HACM in fiscal year 2027.”

GAO’s July report, which had a January cutoff date, noted later on that the Air Force’s target date for initiating the rapid fielding effort, more specifically, was the first quarter of Fiscal Year 2027. This fiscal period began last Thursday and runs through the end of the year. Whether the service is still aiming to keep to that part of the schedule is unclear, but it would seem extremely difficult to do so.

“The HACM program has taken on risk to maintain its current schedule. According to program officials, maintaining the schedule has required aggressively resequencing activities to focus almost exclusively on those necessary to support the first flight test date,” GAO’s report added. “In some cases, officials said this has involved risky strategies, such as concurrently performing parts validation testing while completing the system’s design, which could require the redesign of key parts if they fail validation testing.”

In terms of U.S. hypersonic missile developments, challenges have also not been limited to scramjet-powered types like HACM. Air Force, Navy, and Army efforts to develop a variety of air- and surface-launched hypersonic missiles in various sizes and configurations have all suffered setbacks in the past decade or so. The Navy notably cancelled its own air-launched hypersonic cruise missile program, called Hypersonic Air-Launched Offensive Anti-Surface Warfare, or HALO, last year. The service subsequently shifted focus to the aforementioned Blackbeard under a program called the Multi-mission Affordable Capacity Effector (MACE). This has all prompted particular concerns about a growing and increasingly worrisome gap in this regard between the United States and its chief global competitors, especially China.

There is also a cost question. HACM traces to a time when hypersonic missiles were generally viewed, at least publicly, as highly capable, but also higher-cost and lower-density, assets. Blackbeard, for example, reflects a more recent push to develop and field more economical munition designs across the board that can also be more readily produced at scale. This demand signal has become even more pronounced in light of the dwindling American stockpiles of critical munitions due to the conflict with Iran, as well as other crises globally in recent years. More exquisite munitions, including hypersonic types, will still be part of the larger U.S. arsenal going forward.

Regardless, the U.S. military, as well as its Australian counterparts, have made it clear in the past that they view hypersonic weapons as critical for success in future conflicts, especially high-end fights, such as one in the Pacific against China. In general, air-breathing hypersonic cruise missiles offer a valuable and highly flexible way to strike targets, especially time-sensitive ones, quickly and over extended ranges. The weapon’s high speed and maneuverability drastically increase its ability to penetrate through enemy air defenses and reduce the total time an opponent has to react.

Whether or not the Air Force will be able to avoid any more major delays with HACM remains to be seen. The service’s goal to start at least limited production of HACM before the end of 2027, if not sooner, is even more ambitious now after years of schedule slips. As mentioned, officials have already acknowledged there was no more margin for error at the start of the year. There are many questions still about what form any initial fielding will take, and how that might be further impacted by the truncated testing plan.

The HACM program has at least now hit the important milestone of beginning flight testing.

Contact the author: joe@twz.com

So much has happened over the past seven days, including the Asian Games, Women’s Champions League and a Kylian Mbappe transfer rumour.

About 10% of quizzers got full marks in last week’s edition. Will you make the grade this week?

After more quizzes? Go to our dedicated Football Quizzes and Sports Quizzes pages and sign up for notifications to get the latest quizzes sent straight to your device.