The Wrap reports that the Netflix animation department is undergoing a reconstruction, specifically the kids and family division. One of the department’s executives, director of creative leadership and development for original animation Phil Rynda, has reportedly been let go, along with other staff in the department. Netflix animated shows like Bone, Lauren Faust’s Toil and Trouble, and Roald Dahl’s The Twits have been canceled; the latter will now be adapted into a feature film instead. Netflix reportedly wants to focus on projects that bring in the same number of viewers as Boss Baby, a series licensed from DreamWorks Animation. Netflix recently announced updates for upcoming projects, including the full cast for the children’s animated film My Father’s Dragon, and renewed two adult animation series, Big Mouth and Human Resources.
The news comes on the same day as the Netflix’s quarterly earnings report, where the streamer revealed that it has lost 200,000 subscribers in the last quarter, the first time in over a decade. It also announced that it is considering including an advertising option in the subscription choices, similar to streaming services like Hulu and HBO Max. Vulture has reached out to Netflix animation for comment.