Netflix cuts 6% of workforce as growth slows and programming unit is reorganized

Study the questions and tasks

Work through the material below, or start the interactive practice above to complete an attempt. Try the exercises before opening any answer or transcript sections, then use them to review your work.

Practice level

C2. Try this level if you can follow the instructions and understand most of the language; choose an earlier level if you need more support.

Question formats

Single choice

How to approach this practice

Read the passage for its main idea, then return to the relevant sentence or paragraph for each question. Base answers on the passage.

1. Question 1 · Single choice

   Choose one answer.

   What is the article’s central argument about Netflix’s reorganization?

   Return to the passage, recording or visual
   1. Netflix is abandoning programming to concentrate exclusively on profitability.
   2. Netflix is responding to slower growth through cuts and strategic reassessment.
   3. Netflix exceeded expectations because audience engagement accelerated unexpectedly.
   4. Netflix is expanding its senior content leadership despite operational pressures.
   Check answers and explanations

   Answer

   Netflix is responding to slower growth through cuts and strategic reassessment.

   The article presents restructuring as a response to slowing underlying growth.

   The reorganization therefore combines an immediate reduction in staff with a broader strategic review.

2. Question 2 · Single choice

   Choose one answer.

   Why does the article emphasize the distinction between expectations and underlying trends?

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   1. To argue that quarterly results are always statistically unreliable.
   2. To explain why strong results can coexist with strategic concern.
   3. To show that Wall Street misunderstood Netflix’s financial reporting.
   4. To suggest that profitability has become irrelevant to streaming companies.
   Check answers and explanations

   Answer

   To explain why strong results can coexist with strategic concern.

   It distinguishes short-term results from the durability of broader business performance.

   A business can exceed short-term financial expectations while still confronting a less favorable underlying trend.

3. Question 3 · Single choice

   Choose one answer.

   What does “That distinction” refer to in paragraph four?

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   1. The difference between programming and operations.
   2. The contrast between layoffs and executive departures.
   3. The coexistence of better results and weaker growth.
   4. The difference between American and international audiences.
   Check answers and explanations

   Answer

   The coexistence of better results and weaker growth.

   It refers to outperforming expectations while growth nonetheless slows.

   That distinction is important.

4. Question 4 · Single choice

   Choose one answer.

   What relationship does the article establish between programming and investment decisions?

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   1. Programming decisions are largely independent of financial strategy.
   2. Programming is the principal area through which investment priorities are evaluated.
   3. Programming has become less important because audiences are already secured.
   4. Programming decisions are controlled exclusively by departing executives.
   Check answers and explanations

   Answer

   Programming is the principal area through which investment priorities are evaluated.

   Programming choices determine where resources are committed and operations strengthened.

   Programming is central to that calculation.

5. Question 5 · Single choice

   Choose one answer.

   How is the article organized after introducing the layoffs?

   Return to the passage, recording or visual
   1. It presents historical background before listing current personnel changes.
   2. It moves from personnel actions to performance context and strategic implications.
   3. It compares Netflix with competitors before explaining its own restructuring.
   4. It describes programming projects chronologically and then reports earnings.
   Check answers and explanations

   Answer

   It moves from personnel actions to performance context and strategic implications.

   It moves from immediate events to performance context, implications, and strategy.

   The shake-up followed the release of the company’s latest quarterly earnings.

6. Question 6 · Single choice

   Choose one answer.

   What can reasonably be inferred about Netflix’s prior expansion?

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   1. It was too limited to require meaningful strategic adjustment.
   2. It generated commitments whose scale became harder to sustain.
   3. It occurred primarily through acquisitions of traditional broadcasters.
   4. It was driven by declining engagement in every major market.
   Check answers and explanations

   Answer

   It generated commitments whose scale became harder to sustain.

   The article implies that rapid expansion created substantial existing investment commitments.

   The changes also underscore the pressure on established streaming platforms to maintain momentum once rapid expansion begins to moderate.

7. Question 7 · Single choice

   Choose one answer.

   Why might the restructuring affect more than headcount?

   Return to the passage, recording or visual
   1. Because content leadership influences creative and investment decisions.
   2. Because layoffs automatically increase the company’s programming budget.
   3. Because executive departures remove all existing programming contracts.
   4. Because restructuring eliminates the need for operational execution.
   Check answers and explanations

   Answer

   Because content leadership influences creative and investment decisions.

   Leadership changes may reshape programming development and management.

   The departure of senior content leaders may alter how the company develops and manages its programming.

8. Question 8 · Single choice

   Choose one answer.

   What limitation does the article place on interpreting Netflix’s performance?

   Return to the passage, recording or visual
   1. Financial performance cannot be measured through quarterly earnings.
   2. Audience size and profitability do not fully establish strategic sustainability.
   3. Investment decisions are impossible to assess without executive testimony.
   4. Growth is meaningful only when it occurs outside the United States.
   Check answers and explanations

   Answer

   Audience size and profitability do not fully establish strategic sustainability.

   The article cautions that audience size and profitability alone are insufficient measures.

   For Netflix, the issue is not simply whether it remains profitable or attracts large audiences; it is whether its expansion and customer activity continue to justify the scale and direction of its investments.

What to review next

Find the words that support each answer. For a mistake, compare the question with the evidence and identify the detail or inference you missed.

A focused practice result shows how you did on these tasks. Use several activities across skills to decide what to study next; one practice score does not certify an overall CEFR level.

Before you practise: a worked example

Look for evidence in the text. Separate what the writer says from what you already know about the topic.

The library normally closes at six, but on Fridays it stays open until eight. When does it close on Friday?

The answer is eight. But introduces an exception to the normal closing time, so the first time mentioned is not the answer.

This teaching example is separate from the scored questions. After your test, compare any mistakes with the explanation and revisit the topic before trying again.