Netflix to Slash Spending by $300 Million in 2023
Citing sources familiar with the matter, The Wall Street Journal is reporting that Netflix is planning to cut its spending by $300 million this year (via Yahoo!).
The report notes that Netflix executives have encouraged employees to exercise caution when it comes to spending, including hiring decisions.
However, the sources clarified that there would be no hiring freeze or additional layoffs at this time. Netflix has not yet provided an official statement regarding the spending cuts.
As a result of this news, the company’s shares experienced a decline of nearly 2% during early trading.
While Netflix surpassed first-quarter estimates, it delivered a forecast that fell short of expectations, highlighting the difficulties it faces in its pursuit of growth.
The company recently postponed the broader launch of its plan to combat unauthorized password sharing to the second quarter, aiming to make necessary improvements.
In addition to the spending cuts, Netflix initiated job cuts in June, eliminating 300 positions, which accounted for approximately 4% of its workforce.
A couple of weeks back, Netflix shared its plan to invest $2.5 billion in Korean content, including series, films, and unscripted shows over the next four years.