Netflix’s extraordinary parental leave was part of its culture. That’s over.
Subscribe to enjoy similar stories. Netflix made headlines nearly a decade ago when it unveiled one of corporate America’s most generous parental-leave benefits, pledging to give new moms and dads unlimited time off in their child’s first year. It was a promise Netflix couldn’t keep.
The policy was in line with a core company value, “freedom and responsibility," the idea that employees can be trusted to set their own boundaries. But more staffers than expected took full advantage of the benefit, and Netflix ultimately found it unsustainable. The company has spent the past few years walking back the leave policy, issuing vague and sometimes conflicting guidance internally without explicitly retracting the one-year benefit, according to internal communications reviewed by The Wall Street Journal, as well as interviews with current and former employees.
Taking more than six months of leave is now widely understood to be an unwise career move. The pullback on parental leave points to a central tension now roiling Netflix. The streaming giant credits its culture, and founding principles such as employee freedom, for fueling much of its success.
It has long been known for a competitive workplace that embraces radical transparency and blunt feedback, while also letting employees make their own decisions around spending and time off, trusting them to work in the company’s interest. Executives credited this “no rules" atmosphere for attracting the best talent. But as it grows, Netflix is revisiting those long-held mantras, worrying they’re no longer practical for a company that has some 14,000 employees—a more than 60% jump from before the pandemic.
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