By Rahul / may 15, 2023
Netflix plans to cut spending by $300 million this year to improve profitability amidst intense competition, according to the Wall Street Journal.
The company aims to control costs by reducing hiring, but no hiring freeze or additional layoffs are planned.
While the $300 million reduction is a positive step, it represents a small fraction of Netflix's $26 billion spending in the previous year.
Netflix is also exploring other measures to limit expenses, such as reducing its real estate footprint and adjusting salary ranges.
The company recently raised its estimated free cash flow for 2023 to at least $3.5 billion, up from $3 billion.
Following its first-ever subscriber loss, Netflix introduced stricter measures against password sharing and launched an ad-supported plan called "Basic with Ads" to attract a wider audience.
The new ad-supported plan puts Netflix in direct competition with other streaming services offering similar options, such as Disney+, Hulu, HBO Max, Paramount+, and Peacock.