Netflix tells employees to spend company money 'wisely' after major loss of subscribers

Netflix tells employees to spend company money ‘wisely’ after major loss of subscribers

Streaming giant netflix advises its employees to be more careful about how they spend company money, according to a new memo posted on the company’s website.

The directive is in a memo, first reported by Variety, titled “Netflix Culture – Seeking Excellence.” In the “Judgment” section, he encourages employees to “spend our members’ money wisely”.

In this photo illustration the Netflix logo is displayed on a laptop screen and a smartphone screen in Tehatta, Nadia, West Bengal, India on October 13, 2020. (Photo Illustration by Soumyabrata Roy/NurPhoto/Getty Images)

The memo goes on to detail other company best practices such as selflessness, courage, communication, inclusion and more.

The memo comes after Netflix suffered its first loss of subscribers in more than a decade. The company’s customer base fell by 200,000 subscribers in the January-March period, according to its quarterly earnings report.

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The company blamed the sharing of passwords among its members and increased competition in the Diffusion space to create what he called “headwinds to revenue growth.” Netflix estimated that in addition to its nearly 222 million paying households, the service is shared with an additional 100 million households, including 30 million in the United States and Canada.

Netflix CEO Reed Hastings

Netflix CEO Reed Hastings. (Getty Images/Getty Images)

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Netflix has announced plans to crack down on password sharing and introduce a cheaper solution, ad-supported subscription level. Additionally, the company reportedly canceled several animation projects and laid off some of the department’s staff in an effort to cut costs.

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Netflix expects to lose another 2 million subscribers in the second quarter.

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Fox Business’ Lucas Manfredi contributed to this report.

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