Netflix revised its widely known culture deck in June, following a year-long review and feedback from 1,500 employees. However, the update has drawn criticism, according to a report by Business Insider. Co-CEO Ted Sarandos acknowledged that the original deck “put more emphasis on freedom than responsibility.”
Livemint could not independently verify this news development.
What’s new in Netflix’s culture update?
In the latest version, Netflix removed the “freedom and responsibility” section and introduced a new focus called “People Over Process.” This new approach emphasises hiring “unusually responsible people” who can thrive in an environment that values openness and independence, as per the BI report.
Additionally, Netflix updated its “Keeper’s Test”, a performance evaluation tool first implemented in 2009. The new version encourages regular discussions between employees and their managers about what’s going well in their roles, the report added.
Co-CEO Ted Sarandos on the changes
Addressing concerns about shifting workplace culture, Sarandos reportedly said at The Wall Street Journal’s Tech Live conference, “When anyone says, ‘Hey, the culture is changing.’ Yes, of course it needs to. We definitely change the culture… we wanted to reflect how we work, not dictate how we work.”
The original culture memo, described by former Meta COO Sheryl Sandberg as “the most important document ever to come out of the valley,” was previously updated in 2022. That version made headlines when Netflix suggested employees could leave if they didn’t want to work on content they disagreed with, as per the report.
Netflix Inc shares soared to a record high after the streaming company added more than 5 million customers in the third quarter and eclipsed Wall Street’s expectations on every major financial metric.
Sales for the period grew 15 per cent to $9.83 billion, the company said in a shareholder letter on Thursday, while earnings increased to $5.40 a share. Analysts were predicting that Netflix would add 4.52 million subscribers.
The shares surged 11 per cent to $763.89 on Friday in New York, the biggest gain in a year. The stock has more than quadrupled since May 2022, when a slowdown in the company’s growth led to a major selloff and spooked investors about the entertainment business.
