LOS GATOS, California — Netflix reported third-quarter earnings on Friday showing decelerating revenue growth and heavier spending on content and AI tooling, days after confirming cuts of roughly 1,000 jobs, or 6% of its workforce. Shares fell in after-hours trading.

The results followed reports earlier in the week that Netflix would carry out its biggest layoff in years. Co-chief executives Ted Sarandos and Greg Peters framed the reductions as a drive for efficiency, redirecting resources toward advertising, live programming and generative AI production tools.

Netflix said its ad-supported tier continued to grow, though subscriber additions were moderating in mature markets such as North America. The company's fourth-quarter guidance drew particular scrutiny from investors weighing content budgets against margin targets.

The quarterly results carry weight beyond Netflix. As the first major U.S. streaming company to report this earnings season, its performance shapes expectations for Disney, Warner Bros. Discovery and Comcast, all facing similar pressure to convert streaming into sustained profit.

"We are building a more focused, more efficient company," Sarandos told analysts on the earnings call, adding that investment in AI-assisted production would "expand what our creators can do."