Netflix HR Director Recommends Cutting Off Underperforming Employees To Keep The Best Ones Happy

Netflix's approach to human resources has sparked debate, with a director at the streaming giant arguing that letting go of less effective team members is essential for maintaining a high-performing and engaged workforce.

In recent months, tech giants such as Meta and Microsoft have also been cutting so-called 'low performers,' a practice that has drawn criticism over the implications of such a label. Similarly, Netflix has long prioritised a high-performance work culture, a principle outlined in its widely recognised culture memo, first published in 2009 and continuously refined since.

High Performance Above All

The memo states, 'We aim only to have high performers.' Like a professional sports team, the streaming service concentrates on 'picking the right person for every position, even when that means swapping out someone they love for a better player.'

Cheick Soumaré, who previously worked as an HR director at Netflix, asserted that this culture was crucial for maintaining the satisfaction of top-performing employees. In an interview with Business Insider, Soumaré explained that if strong performers notice others not carrying their share of the load and it's ignored, 'their morale goes down, and that creates other problems.'

Between 2020 and 2022, Soumaré assisted multiple departments, such as business and legal affairs and government relations.

'We want to be very clear that we do think excellence in having the colleagues around you is super important,' Netflix co-CEO Greg Peters said on the Decoder podcast last year. 'To the degree, the business evolves or moves, and we think there's a change that needs to be made, we will make it.'

The Netflix Philosophy

Netflix emphasises both feedback and open communication. Soumaré stated he valued Netflix's culture of clear feedback, especially when addressing performance concerns. The Netflix culture memo highlights 'extraordinary candour' as essential for building a 'dream team.'

Moreover, it advocates for daily feedback, instead of waiting for quarterly or yearly reviews. According to Soumaré, these principles are reflected in everyday practices, and the level of openness surprised him when he initially joined.

Soumaré recalled that, within weeks of starting, a company-wide email from a Netflix co-CEO arrived, outlining the situation of a worker who was let go due to underperformance. 'I was like, 'Wow, talk about transparency,' he said.

A spokesperson from Netflix confirmed that they have discontinued sending company-wide emails explaining the reasons behind employee terminations but did not reveal when this change occurred.

Soumaré argued that Netflix's culture wasn't unfairly harsh. He pointed out that anyone struggling with performance was given 'multiple feedback sessions' before their employment was terminated.

The 'Keeper Test' At Netflix

Netflix's unique work environment features the 'keeper test,' a method for identifying and removing those who do not meet their high standards. Last year, the company revised its culture memo, which included a subtle change to the 'keeper test.'

This memo section now states that if a manager wouldn't actively try to retain an employee or rehire them later, 'we feel it's more just for all parties involved to separate promptly. In 2017, Reed Hastings, then Netflix CEO and now executive chairman, applied the test to dismiss a longtime friend, former chief product officer Neil Hunt.

'You have to separate the emotion from the logic,' Hunt said at the time. Hastings has also shared that he uses this idea for his most recent undertaking, the Powder Mountain ski resort in Utah.