Netflix Defends Culture Memo Update at WSJ Conference

Netflix co-CEO Ted Sarandos defended the recent update to the company's culture memo during the WSJ Tech Live conference, addressing concerns about shifts in workplace culture as the company grows. The revisions, made after a year of research and feedback from 1,500 employees, replace the 'Freedom and Responsibility' section with a 'People Over Process' framework, emphasizing the need for highly responsible employees who can thrive in an open environment. Sarandos explained that the changes aim to reflect how Netflix operates today, rather than imposing rigid policies, and acknowledged that the original memo might have overemphasized freedom over responsibility. The updates also refine the 'Keeper's Test' to encourage regular feedback between employees and managers. Sarandos noted that the cultural evolution is necessary for a company that has grown from 300 employees to about 14,000 globally. The original culture memo, referred to by Sheryl Sandberg as 'the most important document ever to come out of the [Silicon] Valley,' was created by Netflix founder Reed Hastings and has been revised several times to align with the company's growth and operational changes.