Netflix plans to cut spending by $300 million this year. One of the reasons for this; Netflix delays its plans to block password sharing in the US and other countries for a while.There will be no layoffs
Netflix warned its employees to be careful earlier this month, including hiring-related expenses. However, hiring will not be stopped or additional layoffs will occur. The company made a series of layoffs last year. In May 2022, the roads were separated with approximately 150 employees. Shortly after, 300 more people were laid off. Finally, 30 employees working in the animation department were dismissed.
Forecasts below expectations
While the company plans to cut costs by $300 million this year, that figure is a small fraction of the company’s overheads. Netflix’s expenses last year were about $26 billion. The platform was targeting at least $3.5 billion in free cash flow in 2023, but reportedly less than $3 billion.
Password sharing restriction coming
Netflix is trying to find new ways to generate revenue. The company began pushing for password sharing in various countries earlier this year. Netflix received the reaction of the audience as the prices were quite high. Although it can be watched at a slightly more affordable price with the advertising subscription option in the USA, the price of the basic package, which is well below today’s standards in our country, is very high.
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