Netflix’s Chappelle Controversy Deepens: Fired Employee, Internal Strife, and a PR Nightmare

The ongoing turmoil at Netflix, sparked by Dave Chappelle’s latest comedy special "The Closer," reached a new crescendo on Friday with the revelation that the company had terminated a pregnant leader of its transgender employee resource group. This employee, instrumental in organizing an upcoming work stoppage scheduled for October 20th, was reportedly fired amid allegations of leaking confidential company metrics to the press.

While Netflix initially refrained from providing immediate comment, the company later confirmed the termination to The Verge, stating that the employee in question, who has chosen to remain anonymous due to fears of online harassment, had been let go on suspicion of sharing sensitive financial information related to "The Closer."

"We have let go of an employee for sharing confidential, commercially sensitive information outside the company," Netflix stated. "We understand this employee may have been motivated by disappointment and hurt with Netflix, but maintaining a culture of trust and transparency is core to our company."

The leaked materials, which were subsequently reported by Bloomberg on Wednesday, included the disclosure that Netflix paid Chappelle $24.1 million for "The Closer," a figure exceeding the $23.6 million he received for his previous special, "Sticks & Stones" (2019). This substantial payout, even by Netflix’s generous standards, becomes more striking considering internal data also revealed in the leak. According to this data, Netflix assessed "Sticks & Stones" as having an "impact value" of $19.4 million, indicating that the special’s cost outweighed its generated value. Furthermore, "Sticks & Stones" allegedly scored a 0.8 on the company’s "efficiency" scale, a metric used to evaluate programming based on cost and reach, where a score of 1 represents a break-even point.

The significance of these leaks lies in their unprecedented nature within Netflix’s history. Despite the company’s public pronouncements of valuing "radical transparency" and its routine sharing of internal data with employees, the dissemination of such information outside the company is strictly prohibited. The very act of employees leaking internal data to the press underscores the current turbulent internal environment at Netflix and highlights the degree of disaffection among some workers, stemming from the company’s decision to stand by Chappelle’s special.

"The Closer" has ignited controversy due to Chappelle’s commentary on cancel culture and his remarks widely perceived as denigrating the transgender community. The special includes expressions of skepticism about the validity of gender identities and portrays the struggles for justice faced by the Black and trans communities as inherently conflicting, as if no intersectionality exists between the two groups. This perspective clashes sharply with the reality that the oppression and violence experienced by both communities are often deeply intertwined. This disconnect has fueled the anger of many, including a former employee who expressed to The Verge their dismay at the company’s action against a Black and pregnant employee.

"All these white people are going around talking to the press and speaking publicly on Twitter and the only person who gets fired is the Black person who was quiet the entire time," the former employee stated. "That’s absurd, and just further shows that Black trans people are the ones being targeted in this conversation."

In a separate incident, another Netflix employee, Terra Field, a senior software engineer who identifies as queer and trans, faced disciplinary action along with two other colleagues. The company accused them of "spying" on a meeting with executives that they were not authorized to attend. However, Field later clarified on Twitter that she had been reinstated and shared a written statement from Netflix confirming that "no ill intent" was found in her decision to attend the briefing.

As internal and online outrage regarding Chappelle’s comments in "The Closer" escalated, Netflix co-CEO Ted Sarandos attempted to address the concerns of trans allies and employees in a memo. However, his response only served to further inflame the situation. Sarandos argued that "while some employees disagree, we have a strong belief that content on screen doesn’t directly translate to real-world harm."

Sarandos further elaborated, stating, "The strongest evidence to support this is that violence on screens has grown hugely over the last 30 years, especially with first-party shooter games, and yet violent crime has fallen significantly in many countries. Adults can watch violence, assault and abuse—or enjoy shocking stand-up comedy—without it causing them to harm others."

Netflix’s handling of the controversy surrounding "The Closer" has been widely criticized as a textbook example of how to mishandle a public relations crisis. Instead of acknowledging the valid concerns raised by employees and the wider community and addressing internal dissatisfaction with sensitivity, the company’s leadership has consistently dismissed worker’s concerns, terminated Black and trans employees, and made questionable claims that derogatory remarks about the LGBTQ community do not translate into real-world harm.

The series of missteps has resulted in a prolonged and damaging news cycle for Netflix, further tarnishing its brand image and alienating a wide range of marginalized groups. The company’s actions have raised serious questions about its commitment to diversity, inclusion, and the well-being of its employees. Many are now waiting to see what further actions Netflix will take, as the company appears to be caught in a self-perpetuating cycle of negative press and internal turmoil. The situation serves as a stark reminder of the importance of responsible content curation and the potential consequences of failing to address employee concerns in a meaningful and respectful manner.