Netflix tells employees to “spend our members’ money wisely” in new memo

Netflix advises its employees to be fiscally responsible, along with the loss of subscribers, which has raised fears about the viability of streaming services.

An employee directive is coming Renewed Culture Memorandum By the company on Thursday. In the “test” section of the memo, Netflix tells employees:“Spend our members’ money wisely.”

This is a notable change from the rest of the free-flowing document, which also tells employees to “avoid the rules”.

This is happening after Netflix reported The first loss of subscribers. In a decade. Netflix attributed the loss of 200,000 subscribers to account switching, the pandemic and increased competition from competitors. Still, the streaming giant’s loss has alarmed competitors and investors, who are now wondering if all streaming services will experience a similar downturn.

Given the lower expected subscriber count, Netflix said it would consider releasing subscribers section with advertising From the streaming service. Analysts point to Netflix price hike Monthly subscription price New members in January in the US and Canada as another reason for losing subscribers. The streaming company also talked about other measures to reduce costs.

“We are increasing our content and non-content spending,” Spencer Neumann, chief financial officer, said during his first-quarter earnings call. “We’ve tried to be smart and prudent in terms of increasing these costs to reflect the reality of business revenue growth.”

The slowdown as well as executives speak of spending cuts concerns among employees. At Netflix, they’ve seen their hiring slow down and fear being fired in the future.

In the end, Netflix has always stuck to the “Keep Only Our Highly Efficient People” motto, which it repeated once more in Thursday’s updated memo. Variety first published the details of the memo.