Is the controversial Netflix “Keeper Test” good management?

Most companies don’t boast about their penchant for firing people. Netflix is a different story. One of the core tenets of Netflix’s workplace culture is that it functions not like a family, but like a professional sports team. That means anyone—no matter how hard-working they are, or how good their track record might be—is vulnerable to getting cut.

That principle was on full display this month with the surprise ouster of Cindy Holland, Netflix’s longtime vice president of original content, who was responsible for developing a powerhouse slate of domestic programming, from House of Cards and Orange Is the New Black to Stranger Things.

Nonetheless, Netflix co-CEO Ted Sarandos initiated a restructuring that left Holland without a role at the company, and named Bela Bajaria, who had previously overseen non-English TV programming at Netflix, the new head of global TV. As the company looks for more growth by expanding further into international markets, Holland apparently didn’t pass the Keeper Test.

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