I'm guessing he means if you work somewhere that isn't "we only hire the best, and we'll fire you if you're not" like Netflix, the better employees realize they can work half as much for the same pay and just enjoy life more.

These employees are optimizing for free time, not salary. As someone who thinks big tech pays ridiculously more than is necessary for a comfortable lifestyle, if I could work 1 day a week for 1/5 the pay I would (I understand why working so little would likely not make sense, I am just fantasizing).