Earlier quoted context omitted.
An ex Netflix person, who has since moved to Amazon, spoke at a client place three weeks ago. He casually mentioned things such as "we forgive the first time, and we fire the second time". From how he spoke, we felt that this may be the norm in Silicon Valley and related places. I have much respect for what he has achieved, so I didn't interrupt to question such a fear-inducing mindset.
With such important services as streaming Seinfeld, it's easy to see why such a scorched earth policy is necessary.
Of course, this strategy has its downsides. You can't ever hire juniors. You can't really hire people in and train them up at all, because everything has been built under the assumption that only experts will ever touch it. This makes an organization that operates like this inherently parasitic to the industry, only capable of hiring in experienced employees from other companies.