Netflix, Inc NFLX pared back its real-estate footprint, restricted corporate swag, controlled cloud-computing costs, and hired more junior staff to beat the subscriber slowdown, the Wall Street Journal reports.
Netflix’s operating expenses rose 15% year-on-year to $23.5 billion in 2021, thanks to programming, salaries, and content delivery.
Netflix also looks to restrain spending heavily on movies and TV shows.
Netflix lost nearly one million subscribers in the June quarter to competition.
Netflix downsized over 400 employees this year and looked to continue spending on movie and TV programming.
Netflix worked to control rising cloud-computing costs with longtime cloud partner Amazon.com Inc AMZN Amazon Web Services. It had long spent heavily on cloud and networking infrastructure to drive service credibility.
Netflix struggled to keep costs under control as it tried to increase its subscriber base to 500 million customers globally in the next three years.
Netflix weighed reducing the number of copies of data and content it stores globally. It has hired more junior employees, from interns to recent college graduates, to save on its personnel costs.
Netflix also put a check on perks. It closed its Salt Lake City office, opting for remote work instead, and also surrendered space in Los Gatos, California, and Los Angeles.
Netflix has slashed investments in the software it developed internally for use in the production of original content.
Price Action: NFLX shares closed higher by 4.84% at $228.96 on Wednesday.
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