Netflix advises its employees to be fiscally responsible as they face a loss of subscribers that has sparked fears about the viability of streaming services.
The Workers’ Directive comes in a updated culture memo by the company Thursday. In the “Judgment” section of the memo, Netflix tells employees to “spend our members’ money wisely” — a wording the company previously used in a 2018 letter to shareholders, but has so far not been formalized for staff.
This is a marked change from the rest of the largely freewheeling doc, which also tells employees to “avoid rules”.
It comes after Netflix reported the first loss of subscribers in a decade. Netflix attributed the loss of 200,000 subscribers to account sharing, the pandemic and increased competition from rivals. Still, the loss at the streaming giant has left competitors and investors wondering if all streaming services will see a similar slowdown.
In light of weaker-than-expected subscriber numbers, Netflix said it was launching a ad-supported section from the streaming service. Analysts had pointed to Netflix’s price increase’ monthly subscription price in January for new members in the US and Canada as another reason for the loss of subscribers. The streaming company has also talked about other cost-cutting measures.
“We are pulling back some of our spending growth for both content and non-content spending,” said CFO Spencer Neumann during the first quarter earnings call. “We’re trying to be smart about it and be careful about pulling back some of that spending growth to reflect the reality of the company’s revenue growth.”
The delay, as well as executives’ talks about “cutting” costs, have led to: concerns among employees at Netflix, who have seen a slowdown in hiring and fear future layoffs.
Finally, Netflix has always stuck to its motto “Keep only our very effective people,” which it reiterated again in Thursday’s updated memo. Variety first reported the details of the memo.