In a potential shift that could redefine its workplace ethos, Netflix is contemplating revisions to its celebrated “freedom and responsibility” corporate culture, according to a Wall Street Journal story.
The streaming giant, renowned for its innovative approach to corporate governance, is considering removing the “freedom and responsibility” section from its cultural memo—a document often hailed as instrumental in shaping Netflix’s identity. Instead, the company is exploring language that would emphasize employee ownership of actions, pivoting away from an exclusive focus on freedom.
Discussions surrounding these changes occurred during Netflix’s annual business review meeting held in Los Angeles this week, where executives debated proposals aimed at streamlining and refining the culture memo for current and prospective hires. While some executives expressed reservations about the proposed alterations, the company is expected to consider feedback before finalizing the revamped language.
The brainchild of Netflix co-founder Reed Hastings, the “freedom and responsibility” mantra has been a cornerstone of the company’s success, empowering employees to exercise discretion in various aspects of their work life, from internal communication to decision-making processes. Hastings’ advocacy for a culture of trust and autonomy was so profound that he co-authored a book, “No Rules Rules,” extolling its virtues.
Central to Netflix’s cultural philosophy is the notion that employees are entrusted with significant agency, exemplified by policies such as unrestricted sharing of internal documents and a vacation policy simply urging employees to “take a vacation.” However, as Netflix has expanded rapidly in recent years, with its workforce swelling from 8,600 to 13,000 employees, the company has embarked on a reassessment of its cultural norms.
Proposed changes to the culture memo include incorporating language emphasizing the importance of hiring “unusually responsible” individuals while potentially removing references to avoiding “brilliant jerks.” Hastings, who remains executive chairman after stepping down as co-CEO last year, humorously remarked during the recent employee meeting that he hadn’t even passed away yet and they were already contemplating changes to the culture memo—a testament to Netflix’s commitment to ongoing evolution.
Notably, Netflix has already initiated measures to rein in employee freedom, particularly in response to heightened competition in the streaming market and escalating costs. Previously laissez-faire practices, such as managers’ discretionary salary decisions, have been replaced with formalized salary bands for certain roles while spending limits on company-related expenses have been introduced.