Corporate swag bags may soon become a relic of the past, vanishing along with memories of money flowing freely through corporate America’s expense accounts.
Driving the news: As Netflix looks to cut costs in the face of slowing growth, the company is searching high and low for more opportunities to save money, per The Wall Street Journal.
- The streamer is taking steps that include giving up studios and offices, limiting corporate swag and cloud-computing costs, and hiring staff out of college (for cheap).
- The company lost nearly one million subscribers last quarter alone (the streaming wars are no joke), has laid off 400 people, and cut spending on content.
Why it matters: It’s a sign of the economic times. Lavish perks that were once typical for the booming tech sector now look frivolous and wasteful as the financial pressures pile up.
- A TikTok video of the perks at LinkedIn’s Chicago office—complete with hot towels, free breakfast, ping pong, and a quiet room—recently sparked debate over perks.
- In the last month, Microsoft and Google have also asked their employees to cut back on business travel and company events to keep costs down.
Yes, but: Perks help recruit and retain the best talent. With unemployment at record lows and employers pushing for workers to return to the office, it may not be the best time to scrap those free lunches.