In a heartfelt discussion on the “ReThinking” podcast, Brian Chesky, CEO of Airbnb, shared a deeply personal reflection on the process of layoffs during the peak of the COVID-19 pandemic. His transparency about the emotional challenges faced during this period sheds light on a side of corporate leadership that is often hidden behind the formalities of business communication.
The Power of “Love” in Corporate Communication
Chesky’s decision to use the word “love” in his layoff letter was a stark departure from the norm, especially during a time when businesses across the globe were grappling with the necessity of downsizing. “The reason I used the word ‘love’ is ’cause that’s what I felt at the time,” Chesky explained. This emotional honesty came at a time when Airbnb had to make the difficult decision to let go of 1,900 employees—a move that significantly redefined the company’s internal culture.
“The company’s not a family,” Chesky remarked, acknowledging the painful pivot from Airbnb’s earlier days when the company culture was likened to a familial environment. This shift highlights a crucial aspect of corporate life where emotional bonds are tested in the face of economic realities.
How @airbnb handed layoffs at the start of the pandemic pic.twitter.com/nShwyO714M
— This Week in Startups (@twistartups) November 4, 2022
Lessons in Humanity from Layoff Letters
Reflecting on the broader corporate landscape, Chesky criticized the typical inhumanity of layoff notices, suggesting that many seemed as though “a human being didn’t write it.” His approach was to infuse humanity back into a process often sterilized by corporate legalese and detachment. Chesky’s candidness about looking at other companies’ layoff letters only to find them lacking compassion underscores a pervasive issue in corporate America—one that became more pronounced as the pandemic forced numerous businesses to lay off staff.
In stark contrast, the CEO highlighted how these communications often “feel like an AI prompt or something,” which ironically could be more compassionate than the layoff letters penned by actual human executives. Chesky’s critique of risk-averse CEOs who shy away from vulnerability speaks volumes about the need for genuine leadership in times of crisis.
The Ripple Effects of Layoff Methods
The method of layoffs not only affects those who are let go but also impacts the morale and trust of the remaining employees. This was evident from a 2023 survey by PwC, which revealed that 55% of employees felt that the manner in which layoffs were conducted harmed their trust in their companies. Furthermore, 57% believed that greater transparency from executives regarding the reasons for layoffs could foster trust.
The conversation around layoffs reached a fever pitch with incidents like the controversial Zoom layoff by Better.com’s CEO Vishal Garg in December 2021, and Tesla’s criticized email layoffs, highlighting the ongoing challenge companies face in maintaining dignity and respect in their dismissal practices.
Lessons from Airbnb’s CEO for Post-Pandemic Leadership
As businesses continue to navigate the post-pandemic world, the lessons from leaders like Brian Chesky could serve as crucial guideposts. The need for compassionate leadership—where executives are encouraged to communicate with honesty and vulnerability—may very well shape the future of how companies engage with their employees during both prosperous and challenging times.
The candid reflections of Airbnb’s CEO not only offer a glimpse into the emotional toll of pandemic-era leadership but also challenge other leaders to rethink how they approach the inevitable hardships of running a business. In doing so, Chesky’s reflections offer a blueprint for fostering a corporate culture that values human connection, even in the midst of the most challenging circumstances.
