Netflix tells employees to ‘spend our members’ money wisely’ – The Hollywood Reporter

Netflix tells employees to ‘spend our members’ money wisely’ – The Hollywood Reporter

Netflix is ​​advising its employees to be tax-responsible as it faces the loss of subscribers that has raised fears about the profitability of streaming services.

The workers’ directive comes in a updated culture memo from the company Thursday. Under the “Judgement” section of the memo, Netflix urges employees to “spend our members’ money wisely” — a phrase the company previously used in a 2018 letter to shareholders but has not yet formalized for employees.

This is a marked change from the rest of the largely free-roaming document, which also urges employees to “avoid rules.”

It comes after Netflix reported his first loss of subscribers in a decade. Netflix attributed the loss of 200,000 subscribers to account sharing, the pandemic and increasing competition from rivals. Still, the streaming giant’s loss has unsettled competitors and investors, who are now questioning whether all streaming services will experience a similar slowdown.

Given weaker-than-expected subscriber numbers, Netflix said it will be introducing a advertising-supported area of the streaming service. Analysts had pointed out Netflix’s price increase monthly subscription price in January for new members in the US and Canada as another reason for losing subscribers. The streaming company has also talked about other cost-cutting measures.

“We are trimming some of our spending growth across both content and non-content spending,” CFO Spencer Neumann said during the company’s first-quarter earnings call. “We’re trying to be smart and prudent about scaling back some of that spending growth to reflect the realities of the company’s revenue growth.”

The slowdown, as well as executives’ talk of “savings” on costs, has led to this concerns among employees at Netflix, which is seeing a slowdown in hiring and fears future layoffs.

Finally, Netflix has always adhered to the motto “keep only our highly effective employees,” reiterated in Thursday’s updated memo. diversity first reported the details of the memo.

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