✔️ 2022-09-10 01:31:59 – Paris/France.
- Netflix lost nearly a million subscribers in the last quarter alone, prompting it to cut costs.
- The company is planning new measures to save, such as better control of its spending on cloud services and the hiring of more junior employee profiles.
- This will also reduce the merchandising amount to a maximum investment of $300.
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After the days of abundance experienced by the platforms of Streaming during the pandemic, the situation has worsened for large companies in the sector, such as Netflix.
Despite still being the platform with the most subscribers in the world, Netflix lost almost a million users in the second quarter of this year. This according to its latest economic results; which is actually a lower number than analysts expected.
Now Netflix is preparing new measures to cut costs and adapt to its slowing revenue, according to the Wall Street Journal.
Among the measures, the limitation of branded promotional gifts and better control of cloud computing expenses stand out. They will also hire more junior employees.
As for the expenses of services in the cloud, Netflix will try to make its partner Amazon Web Services assume a lower bill than the current one. To do this, it is studying how to reduce the number of copies of data it stores around the world while maintaining its existing services.
Another of Netflix's big initiatives is to attract what it calls "emerging talent" internally. That is to say employees with little or no experience and with junior profiles, with lower salaries.
This contrasts with the platform's previous policy, which, especially for engineering professions, opted for seniors with several years of experience in the sector and also higher salaries.
Netflix's spending will even be reduced on promotional items bearing its logo to increase its brand presence. The company will limit the number of such items, such as mugs, sweatshirts and baby clothes, that its employees can currently receive.
Platform workers will now have a $300 limit on the company merchandising items they can receive.
Real estate spending is also at the center of Netflix's spending cuts. The company is closing its Salt Lake City office, which specializes in legal and technical matters, and has asked its employees to work remotely. It will also reduce office space at its Los Gatos and Los Angeles California facilities.
These measures come after Netflix made several rounds of layoffs.
The first was in May, after losing users for the first time in its history in the first quarter. So it cut 150 full-time employees, 70 employees from its animation studio, and as many cuts to its social media team.
Then, in June, Netflix confirmed another round of 300 layoffs to bring costs in line with revenue amid a slowdown in subscriber numbers.
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SOURCE: Reviews News
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