Wednesday, October 1, 2025
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Netflix Co-CEO Ted Sarandos Addresses Culture Shift Concerns

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Netflix, the global streaming giant, has been at the forefront of entertainment innovation.

However, recent changes to its company culture have sparked internal discussions and raised questions among employees.

Co-CEO Ted Sarandos recently addressed these concerns, shedding light on the rationale behind the shifts and emphasizing the need for evolution.

The Famous Culture Memo at Netflix

Netflix’s culture memo, initially crafted by founder Reed Hastings when the company had fewer than 300 employees, has been a cornerstone of its success.

In June, Netflix revised its famous culture deck after gathering feedback from 1,500 employees.

The changes aimed to align the company’s values with its current workforce of over 14,000.

The original culture memo placed significant emphasis on freedom, reflecting Netflix’s early startup days.

However, Ted Sarandos acknowledged that balance is essential. The company needed to address both freedom and responsibility.

The updated culture deck introduced a new section titled “People Over Process.”

This framework prioritizes hiring “unusually responsible people” who thrive on openness and freedom.

Netflix’s infamous “Keeper’s Test,” used by managers to evaluate whether an employee should stay or go, also received a tweak.

The new version encourages regular communication between employees and their managers.

Evolution and Adaptation

Co-Ceo Ted Sarandos emphasized that culture cannot remain static. As Netflix grows and faces new challenges, adaptation becomes crucial.

The 2022 rewrite of the memo highlighted the importance of representation and artistic expression.

Netflix aims to foster an environment where diverse voices are heard and creativity flourishes.


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Sahiba Sharma
Sahiba Sharmahttps://sightsinplus.com/
Sahiba Sharma, Senior Editor - Content at SightsIn Plus