A Message from Airbnb CEO
A letter from Airbnb’s Co-Founder and CEO Brian Chesky went viral and caught my attention.
Some people hail it as a sample letter for the CEO’s of all big companies.
Let’s take a closer look at it and discuss what’s special about it.
The original message was published on the Airbnb’s official website on May 5, 2020 at:
https://news.airbnb.com/a-message-from-co-founder-and-ceo-brian-chesky/
This is my seventh time talking to you from my house. Each time
we’ve talked, I’ve shared good news and bad news, but today I have to
share some very sad news.
[Fuolao’s comment: A good opening, concise and clear, that sets a soft tone, especially the mentioning of the place (“my house”) where the message was delivered. It made me feel a human touch and interested in reading on.]
When you’ve asked me about layoffs, I’ve said that nothing is
off the table. Today, I must confirm that we are reducing the size of
the Airbnb workforce. For a company like us whose mission is centered
around belonging, this is incredibly difficult to confront, and it will
be even harder for those who have to leave Airbnb. I am going to share as many details as I can on how I arrived at this decision, what we are
doing for those leaving, and what will happen next.
[Fuolao’s comment: Not many CEO’s or company statements will tell you how the decision was made. They announce something to you as the final call, you being on the receiving end only, left in the dark.]
Let me start with how we arrived at this decision. We are
collectively living through the most harrowing crisis of our lifetime,
and as it began to unfold, global travel came to a standstill. Airbnb’s
business has been hit hard, with revenue this year forecasted to be less
than half of what we earned in 2019. In response, we raised $2 billion
in capital and dramatically cut costs that touched nearly every corner
of Airbnb.
While these actions were necessary, it became clear that we would have to go further when we faced two hard truths:
- We don’t know exactly when travel will return.
- When travel does return, it will look different.
[Fuolao’s comment: very clear message because those 2 questions echo with most of us now. It is the truth, not an excuse.]
While we know Airbnb’s business will fully recover, the
changes it will undergo are not temporary or short-lived. Because of
this, we need to make more fundamental changes to Airbnb by reducing the
size of our workforce around a more focused business strategy.
Out of our 7,500 Airbnb employees, nearly 1,900 teammates
will have to leave Airbnb, comprising around 25% of our company. Since
we cannot afford to do everything that we used to, these cuts had to be
mapped to a more focused business.
A more focused business
Travel in this new world will look different, and we need to
evolve Airbnb accordingly. People will want options that are closer to
home, safer, and more affordable. But people will also yearn for
something that feels like it’s been taken away from them — human
connection. When we started Airbnb, it was about belonging and
connection. This crisis has sharpened our focus to get back to our
roots, back to the basics, back to what is truly special about Airbnb —
everyday people who host their homes and offer experiences.
This means that we will need to reduce our investment in
activities that do not directly support the core of our host community.
We are pausing our efforts in Transportation and Airbnb Studios, and we
have to scale back our investments in Hotels and Lux.
These decisions are not a reflection of the work from people
on these teams, and it does not mean everyone on these teams will be
leaving us. Additionally, teams across all of Airbnb will be impacted.
Many teams will be reduced in size based on how well they map to where
Airbnb is headed.
How we approached reductions
It was important that we had a clear set of principles,
guided by our core values, for how we would approach reductions in our
workforce. These were our guiding principles:
- Map all reductions to our future business strategy and the capabilities we will need.
- Do as much as we can for those who are impacted.
- Be unwavering in our commitment to diversity.
- Optimize for 1:1 communication for those impacted.
-
Wait to communicate any decisions until all details are landed —
transparency of only partial information can make matters worse.
I have done my best to stay true to these principles.
[Fuolao’s
comment: It recapped how the bosses have reached the conclusion, and most
important, the guiding principles that the company has followed before
the decision was finalized.]
Process for making reductions
Our process started with creating a more focused business
strategy built on a sustainable cost model. We assessed how each team
mapped to our new strategy, and we determined the size and shape of each
team going forward. We then did a comprehensive review of every team
member and made decisions based on critical skills, and how well those
skills matched our future business needs.
The result is that we will have to part with teammates that
we love and value. We have great people leaving Airbnb, and other
companies will be lucky to have them.
To take care of those that are leaving, we have looked across
severance, equity, healthcare, and job support and done our best to
treat everyone in a compassionate and thoughtful way.
[Fuolao’s comment: The process is the strategy for implementing the reduction.]
Severance
Employees in the US will receive 14 weeks of base pay, plus
one additional week for every year at Airbnb. Tenure will be rounded to
the nearest year. For example, if someone has been at Airbnb for 3 years
and 7 months, they will get an additional 4 weeks of salary, or 18
weeks of total pay. Outside the US, all employees will receive at least
14 weeks of pay, plus tenure increases consistent with their
country-specific practices.
[Fuolao’s comment: severance package normally is the only thing people care in a layoff plan. Most companies will explain how much you will be paid to leave and that’s it.]
Equity
We are dropping the one-year cliff on equity for everyone
we’ve hired in the past year so that everyone departing, regardless of
how long they have been here, is a shareholder. Additionally, everyone
leaving is eligible for the May 25 vesting date.
Healthcare
In the midst of a global health crisis of unknown duration,
we want to limit the burden of healthcare costs. In the US, we will
cover 12 months of health insurance through COBRA. In all other
countries, we will cover health insurance costs through the end of 2020.
This is because we’re either legally unable to continue coverage, or
our current plans will not allow for an extension. We will also provide
four months of mental health support through KonTerra.
[Fuolao’s comment: Healthcare in 2020 is more important than ever for those who are going to lose their jobs.]
Job support
Our goal is to connect our teammates leaving Airbnb with new job opportunities. Here are five ways we can help:
-
Alumni Talent Directory — We will be launching a public-facing
website to help teammates leaving find new jobs. Departing employees can
opt-in to have profiles, resumes, and work samples accessible to
potential employers. -
Alumni Placement Team — For the remainder of 2020, a significant
portion of Airbnb Recruiting will become an Alumni Placement Team.
Recruiters that are staying with Airbnb will provide support to
departing employees to help them find their next job. -
RiseSmart — We are offering four months of career services
through RiseSmart, a company that specializes in career transition and
job placement services. -
Employee Offered Alumni Support — We are encouraging all
remaining employees to opt-in to a program to assist departing teammates
find their next role. - Laptops — A computer is an important tool to find new work, so we are allowing everyone leaving to keep their Apple laptops.
[Fuolao’s comment: I have not seen any other company that explains the after-reduction job support so clearly. The message is we are not dumping you; we are sad to see you have to leave us; but we still care about your wellbeing in the future.]
Here is what will happen next
I want to provide clarity to all of you as soon as possible.
We have employees in 24 countries, and the time it will take to provide
clarity will vary based on local laws and practices. Some countries
require notifications about employment to be received in a very specific
way. While our process may differ by country, we have tried to be
thoughtful in planning for every employee.
In the US and Canada, I can provide immediate clarity. Within
the next few hours, those of you leaving Airbnb will receive a calendar
invite to a departure meeting with a senior leader in your department.
It was important to us that wherever we legally could, people were
informed in a personal, 1:1 conversation. The final working day for
departing employees based in the US and Canada will be Monday, May 11.
We felt Monday would give people time to begin taking next steps and say
goodbye — we understand and respect how important this is.
Some employees who are staying will have a new role, and will
receive a meeting invite with the subject “New Role” to learn more
about it. For those of you in the US and Canada who are staying on the
Airbnb team, you will not receive a calendar invite.
At 6pm pacific time, I will host a world@ meeting for our
Asia-Pacific teams. At 12am pacific time, I will host a world@ meeting
for our Europe and Middle East teams. Following each of these meetings,
we’ll proceed with next steps in each country based on local practices.
I’ve asked all Airbnb leaders to wait to bring their teams
together until the end of this week out of respect to our teammates
being impacted. I want to give everyone the next few days to process
this, and I’ll host a CEO Q&A again this Thursday at 4pm pacific
time.
[Fuolao’s comment: a CEO Q&A…]
Some final words
As I have learned these past eight weeks, a crisis brings you
clarity about what is truly important. Though we have been through a
whirlwind, some things are more clear to me than ever before.
First, I am thankful for everyone here at Airbnb. Throughout
this harrowing experience, I have been inspired by all of you. Even in
the worst of circumstances, I’ve seen the very best of us. The world
needs human connection now more than ever, and I know that Airbnb will
rise to the occasion. I believe this because I believe in you.
Second, I have a deep feeling of love for all of you. Our
mission is not merely about travel. When we started Airbnb, our original
tagline was, “Travel like a human.” The human part was always more
important than the travel part. What we are about is belonging, and at
the center of belonging is love.
To those of you staying,
One of the most important ways we can honor those who are
leaving is for them to know that their contributions mattered, and that
they will always be part of Airbnb’s story. I am confident their work
will live on, just like this mission will live on.
To those leaving Airbnb,
I am truly sorry. Please know this is not your fault. The
world will never stop seeking the qualities and talents that you brought
to Airbnb…that helped make Airbnb. I want to thank you, from the bottom
of my heart, for sharing them with us.
Brian
[Fuolao’s comment: To close the letter with a sorry is smart and I don’t feel it perfunctory.]
