A hot potato: Losing a job is among the toughest challenges most individuals face. Few actions can soften the blow, but would the anguish lessen if your manager helps with packing your belongings? One CEO indeed did this, asserting that the exchange was advantageous for both himself and the terminated employees.
Max Levchin, a PayPal co-founder and the current CEO of Affirm, which offers flexible payment plans to shoppers, discussed the initial occasion he executed layoffs on a recent episode of The Twenty Minute VC podcast (via Business Insider).
“I didn’t know what I was doing and I was terrified of owning the responsibility that I screwed up,” he mentioned.
Levchin remarked that accompanying employees who had been laid off was more beneficial than secluding himself in an office. He found assisting workers in packing their belongings and accompanying them out was a cathartic experience, not only for those affected but also for himself.
Affirm is among numerous tech companies that have implemented layoffs in recent years. It reduced its workforce by 485 employees, or roughly 16%, in 2023, followed by another 140 in February 2024.
Levchin further mentioned that the response to layoffs often reflects the company culture. Employees who were released expressed that they understood the necessity of the layoffs and hoped to return.
“If the culture of the company is great, the blow is much softer,” he noted. “People understand that you tried with every possible strategic or tactical idea to avoid this.”
While Levchin’s approach might not appeal to everyone, there have been numerous instances where CEOs have handled layoffs in less empathetic ways. Last November, one leader fired 99 individuals and brusquely told them to “get the f**k out” due to non-attendance at a meeting, even though most were unpaid remote part-time workers.
The most notorious case occurred in 2021 when the Better.com CEO dismissed 900 employees during a brief three-minute Zoom call. Following the layoffs, he accused many departing staff of laziness and theft. A week later, he issued an apology letter to his employees.
Conversely, some CEOs have taken positive steps to assist laid-off employees. For instance, Brian Chesky, the CEO of Airbnb, personally connected with industry leaders to aid 1,900 employees laid off in 2020 in securing new jobs.
