Netflix must cut US$ 300 million in spending in 2023 – 05/12/2023 – Market

Netflix plans to cut its spending by $300 million this year, the Wall Street Journal reported on Friday, citing sources familiar with the matter.

Company leaders urged employees to be judicious with their spending, including on hiring, but said there would be no hiring freezes or further mass layoffs, according to the paper.

Netflix declined to comment. Shares in the company were down about 2% on Friday.

Last month, the company beat estimates for the first quarter, but offered a weaker-than-expected forecast, demonstrating the challenges the company faces in its pursuit of growth.

The company said that, to make improvements, it had delayed the broader rollout of a plan to crack down on unauthorized password sharing until the second quarter.

As the streaming pioneer faces signs of market saturation, the company is exploring new ways to make money, such as a crackdown on password sharing and a new ad-supported service.

In June, Netflix also laid off 300 employees, about 4% of its employees, in the second round of staff cuts aimed at cutting costs.