WSJ says Netflix plans to cut spending by $300 million

The Wall Street Journal reports that Netflix intends to pare down its expenditure by $300 million within the year, albeit without plans for staff reductions or a halt in external recruitment. Disclosed to its employees in early May, Netflix intends to meticulously manage expenses, thereby curtailing non-essential outlays.

To accommodate this $300 million expenditure reduction, Netflix may resort to slashing certain costs. However, the entertainment giant remains committed to promoting its original television programs and cinematic content and even plans to foster additional revenue opportunities through the expansion of its service offerings, such as the forthcoming release of approximately 40 mobile games this year.

In a recent open letter to investors, Netflix revealed significant success with the implementation of a novel shared family account usage model in Argentina, El Salvador, Guatemala, Honduras, and the Dominican Republic. The company anticipates extending this model to the United States and other markets commencing the second quarter of the year, thereby reducing operational costs and augmenting profit opportunities.