Netflix, the popular streaming giant, is reportedly planning to reduce its spending by $300 million this year, as stated in a recent report from The Wall Street Journal. The decision comes in light of the company’s delay in implementing its crackdown on password sharing, pushing the expected revenue from the move to the second half of the year.

While Netflix has encouraged its staff to be mindful of their spending, including hiring decisions, it clarified that there would be no hiring freeze or additional layoffs at this time. However, the company declined to comment on the matter.

It’s worth noting that the $300 million cost reduction represents only a small fraction of Netflix’s overall expenses. In 2022, the company’s operating expenses amounted to approximately $26 billion.

Although Netflix exceeded expectations in the first quarter, it reported a forecast that fell short of estimates last month. Nevertheless, Netflix raised its target for generating free cash flow in 2023 to at least $3.5 billion, up from the previous goal of $3 billion.

To explore new revenue streams, Netflix has taken steps such as implementing its password sharing crackdown in countries like Canada, New Zealand, Portugal, and Spain. These measures require paying users to designate a primary account location and prompt them to purchase additional memberships if someone outside their household is using their account.

Additionally, Netflix introduced an ad-supported plan called “Basic with Ads” in November last year. Priced at $6.99 per month, it offers a lower-cost alternative compared to Netflix’s other subscription tiers and competes with ad-supported options from streaming services like Disney+, Hulu, HBO Max, Paramount+, and Peacock.

In an effort to control costs, Netflix underwent job cuts in 2022, laying off around 150 employees in May and an additional 300 people, representing about 3% of its workforce at the time, the following month. In September, the company also let go of 30 employees from its animation department.

The password sharing crackdown is expected to roll out in the U.S. by or before June 30, impacting how users share their Netflix accounts.

Netflix, the popular streaming giant, is reportedly planning to reduce its spending by $300 million this year, as stated in a recent report from The Wall Street Journal. The decision comes in light of the company’s delay in implementing its crackdown on password sharing, pushing the expected revenue from the move to the second half of the year.

While Netflix has encouraged its staff to be mindful of their spending, including hiring decisions, it clarified that there would be no hiring freeze or additional layoffs at this time. However, the company declined to comment on the matter.

It’s worth noting that the $300 million cost reduction represents only a small fraction of Netflix’s overall expenses. In 2022, the company’s operating expenses amounted to approximately $26 billion.

Although Netflix exceeded expectations in the first quarter, it reported a forecast that fell short of estimates last month. Nevertheless, Netflix raised its target for generating free cash flow in 2023 to at least $3.5 billion, up from the previous goal of $3 billion.

To explore new revenue streams, Netflix has taken steps such as implementing its password sharing crackdown in countries like Canada, New Zealand, Portugal, and Spain. These measures require paying users to designate a primary account location and prompt them to purchase additional memberships if someone outside their household is using their account.

Additionally, Netflix introduced an ad-supported plan called “Basic with Ads” in November last year. Priced at $6.99 per month, it offers a lower-cost alternative compared to Netflix’s other subscription tiers and competes with ad-supported options from streaming services like Disney+, Hulu, HBO Max, Paramount+, and Peacock.

In an effort to control costs, Netflix underwent job cuts in 2022, laying off around 150 employees in May and an additional 300 people, representing about 3% of its workforce at the time, the following month. In September, the company also let go of 30 employees from its animation department.

The password sharing crackdown is expected to roll out in the U.S. by or before June 30, impacting how users share their Netflix accounts.