Netflix walking back on its one-year leave policy for new parents

Streaming giant Netflix has been gradually stripping its policy of unlimited parental leave to moms and dads during the first year of their child’s birth — albeit with unclear and at times contradictory instructions. However, it has not yet officially cancelled the one-year benefit. As per The Wall Street Journal (WSJ), taking a leave of more than six months at Netflix is seen as a potentially harmful career move.

While Netflix’s Chief Talent Officer Sergio Ezama stated that the company has not pulled back from its policy, which “has always been to ‘take care of (their) child and (themselves)’,” employees now believe otherwise.

Ten years ago, Netflix was one of the only corporates that gave new moms and dads unlimited parental leave during the first year of their child’s birth. This policy came in line with its culture of letting employees set their own boundaries, trusting them with “freedom and responsibility.”

Today, it has about 14,000 employees, a big jump from the few hundred employees it started with. In June 2024, Netflix removed the “freedom and responsibility” section of its policies.

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Employees feel that company has been straying from what made it unique. They say the company used to earlier prioritise its employees and them being able to spend time with their new-borns but has now moved to a more business and profit-oriented model.

Back in 2015, Netflix formulated the one-year leave policy with an eye on gaining an edge over its competitors who were then offering 8-24 weeks of paid parental leave. But it had not bargained for the volume of employees who applied for the leave.

As per the WSJ report, Netflix started updating its language in 2018 to deal with the challenges of the policy, specifying that most employees typically take a leave of 4-8 months, instead of the entire 12 months.

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Some executives raised concerns in leadership meetings that many employees on or recently returned from parental leave were being laid off, which could give the impression that Netflix was targeting those on leave, which was contested by the company.

A Netflix spokesperson told WSJ that an analysis showed only a small percentage of those affected by layoffs were on parental leave. In many cases, Netflix agreed to pay these employees for the rest of their leave, along with severance, according to those familiar with the situation.

However, many have reported otherwise, with employees feeling pressured to shorten their leave or fearing job loss during restructuring. Several employees have faced layoffs shortly before or after returning from parental leave, leading to lawsuits and negative perceptions of the policy.

Netflix is undergoing a cultural shift focused on profitability, with changes to its leave policy, transparency practices, and internal communication. The company has limited employees’ access to corporate documents, reduced salary flexibility, and cut back on employee perks.

Also Read: Netflix subscriber additions likely slowed, growth strategy in focus