Netflix plans to cut costs by $300 million this year: Report
Netflix Inc plans to cut costs by $300 million this year, the Wall Street Journal reported on Friday, citing people familiar with the matter.
Company executives urged employees to be prudent about their spending, including hiring, but said there would be no hiring freeze or new layoffs, according to the report.
Netflix declined to comment. The company’s shares fell almost 2% at the start of trading.
Last month, Netflix beat first-quarter estimates but offered a softer-than-expected forecast, indicating the challenges it faces in its pursuit of growth.
The company said it has postponed a broader plan to prevent unauthorized password sharing to the second quarter to make improvements.
As the streaming video pioneer faces signs of market saturation, it is exploring new ways to make money, such as anti-passwords and a new ad-supported service.
In June, Netflix also laid off 300 employees, or about 4 percent of its workforce, in another round of cost-cutting.
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