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Netflix plans to cut spending by $300 million this year - WSJ

Published 05/12/2023, 11:22 AM
Updated 05/12/2023, 11:27 AM
© Reuters. FILE PHOTO: A smartphone with the Netflix logo lies in front of displayed "Streaming service" words in this illustration taken March 24, 2020. REUTERS/Dado Ruvic/Illustration/File Photo
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(Reuters) - Netflix Inc (NASDAQ:NFLX) plans to cut its spending by $300 million this year, the Wall Street Journal reported on Friday, citing people familiar with the matter.

Company leaders urged staffers to be judicious with their spending, including in relation to hiring, but said there would be no hiring freeze or additional layoffs, according to the report.

Netflix declined to comment. Shares of the company were down nearly 2% in early trading.

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

The company said it shifted a wider launch of a plan to crack down on unsanctioned password sharing into the second quarter to make improvements.

© Reuters. FILE PHOTO: A smartphone with the Netflix logo lies in front of displayed

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

Netflix in June also laid off 300 employees, or about 4% of its workforce, in the second round of job cuts aimed at lowering costs.

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