In an interior notice, Chief Executive Reed Hastings apologized to staff for not acting sooner.
He said the remarks demonstrated a “profound absence of comprehension”.
Jonathan Friedland wrote in a tweet: “I feel horrendous about the trouble this slip by caused to individuals at an organization I cherish.”
He had been at the video spilling firm since 2011.
“Pioneers must be blameless in the case we set, and lamentably I missed the mark concerning that standard when I was coldhearted in addressing my group about words that insult in parody,” he said.
The update from Mr Hastings was first distributed by The Hollywood Reporter – its legitimacy has been affirmed by the BBC.
“His enlightening utilization of the N-word on no less than two events at work demonstrated inadmissibly low racial mindfulness and affectability,” the note to all staff read.
Mr Hastings nitty gritty two examples when Mr Friedland was said to have utilized the hostile term.
The main episode was at a gathering with the advertising group to examine touchy words.
“A few people a while later revealed to him how unseemly and harmful his utilization of the N-word was, and Jonathan apologized to those that had been in the gathering,” Mr Hastings composed.
“We trusted this was a terrible inconsistency never to be rehashed.”
Be that as it may, a couple of days after the fact the term was utilized again – this time at a gathering of dark representatives at the organization.
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Mr Hastings said he just as of late heard in regards to the second occurrence. He went ahead to commend Mr Friedland’s commitment to the organization, which is today worth around $180bn (£135bn).
“Jonathan has been an extraordinary giver and he manufactured a different worldwide group making mindfulness for Netflix, reinforcing our notoriety around the globe, and helping make us into the fruitful organization we are today.
“Huge numbers of us have worked intimately with Jonathan for quite a while, and have blended feelings. Lamentably, his absence of judgment around there was too huge for him to remain.”
In a tweet accordingly erased, Mr Friedland expressed: “Ascend high, fall quick. All on two or three words.”