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Netflix Has Reached a P.R. Inflection Point

Reed Hastings
Photo By Justin Sullivan/Getty Images
Matthew Belloni
October 17, 2021

Netflix co-C.E.O. Ted Sarandos has taken most of the heat for Dave Chappelle’s anti-L.G.B.T.Q.+ special, The Closer. But an underrated aspect of this communications and employee relations disaster actually takes its root in the business philosophy of the company’s other co-C.E.O., Reed Hastings.

From the beginning, Hastings has operated Netflix like his employees are part of a small family in a quiet Silicon Valley utopia. It’s all in his management advice book from last year: Everyone’s an adult here, he says. Direct and brutal honesty is rewarded. “Sunshine” your problems so everyone knows about them … and can learn. Give employees access to their colleagues’ salary information and strategy documents, just tell them not to get jealous or competitive. And company communications—even on controversial topics or with sensitive information—should be delivered directly to staff with the expectation that they not be shared outside the company. We trust you, so you trust us.