The latest memo from Netflix, posted under the careers section, asks employees to spend their members’ money wisely. It lays out its expectations for employees and sets a precedent for work culture. Many tech companies stipulate the kind of culture they want. The “Judgment” section of the memo is the most controversial. Although Netflix has not commented on the new addendum, many employees believe it will have a negative effect on the company’s culture.
Netflix memo urges employees to “spend our members’ money wisely”
A new memo from Netflix tells employees to be more fiscally responsible. The company has revised its culture deck, and has included an “adoption of judgment” section. While it is still unclear what this section aims to achieve, the company is attempting to set a “dream team” culture in which employees are encouraged to make good decisions. Several other companies have used similar language, but it hasn’t been formalized.
It’s slowing down
The memo is a reaction to the poor first quarter earnings and the fire of an employee who leaked financial data from Chappelle’s 2021 special. Netflix also directs employees to keep company information confidential. In the memo, employees are also told to spend our members’ money wisely. Netflix shares have plummeted 35% since the memo was first published. Its response has been to improve content and lower its costs, test ways to get subscribers to share passwords and explore a cheaper, ad-supported version of its service.
It’s facing a loss of subscribers
The news that Netflix is facing a loss of subscribers is hardly a surprise. The company recently raised its prices in many territories, causing people to wonder if they are still getting value for their money. Some critics have compared Netflix to a tap company, treating content like water. However, Netflix is trying to increase revenue by cracking down on password sharing, which they once tolerated. Nevertheless, it is unclear if these changes will help it to turn things around.
It’s laying off staffers
In a surprise move, Netflix is laying off 25 marketing staffers without warning. The company also closed a website that had attracted millions of Netflix subscribers: Tudum. The site’s staff was told they were being laid off without warning and were being offered two weeks’ severance pay. Support from social media was overwhelming for the writers, who were many of them former journalists looking for a stable job.
It’s trying to cut back on costs
With subscriptions falling, it is no wonder that Netflix is looking to reduce costs by telling employees to “spend our members’ money on other things.” The company has recently raised prices by $1 to $2 per month in the U.S., Canada, and Chile, and is cracking down on password sharing. Moreover, it is implementing an extra charge for “sub accounts” in Chile, Costa Rica, and Peru. However, the latest announcement by Netflix has some consumers thinking twice before subscribing.