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Netflix itself uses the analogy of a high-performing sports team, or at least used to. So this would be like if the LA Rams say they will drop you from the team if you aren't NFL caliber. It's hard to read a straightforwardly high expectation to match the environment and coworkers as toxic.

Now, it is toxic if a mediocre organization tries to fire a particular good performer because they aren't exceptional, when clearly the rest of the organization also isn't exceptional. That is dishonest, delusional, etc.