Hastings: Four to nine months of severance eases difficult employee terminations
Reed Hastings · The Netflix Culture Code That Changed Entertainment Forever | Reed Hastings Interview · Invest Like The Best · Jan 6, 2026 · at 9:46
Reed Hastings, co-founder and Executive Chairman of Netflix, discusses how Netflix managed high talent density and handled employee departures morally and effectively.
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“One of the best things is to do large severance packages, like four to nine months of salary. And so it feels expensive at first, but one is it makes the person who's let go feel a little bit better. Because they've got a bunch of money in their pocket. Two, it helps the manager do their job because then they don't feel as bad in letting the person go. And then, you know, it just sets up a much better mutual feeling.”
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