Airbnb – Transparent Communication in Crisis
Introduction: During the COVID-19 pandemic, Airbnb faced a near-total halt in global travel and responded with a widely cited example of transparent crisis communication. This article explains how co-founder and CEO Brian Chesky communicated the decision to reduce Airbnb's workforce by about 25%, sharing the business rationale, guiding principles, and support measures for departing employees. All details are drawn from Airbnb's published letter to staff and independent reference material.
Openly sharing the business reality
When global travel came to a standstill, Airbnb's business was hit hard, with revenue forecasted to be less than half of what the company earned in 2019. In response, the company raised $2 billion in capital and dramatically cut costs across nearly every corner of the business. Despite these actions, leadership concluded that more fundamental changes were required. Out of 7,500 employees, nearly 1,900 teammates would have to leave Airbnb, comprising around 25% of the company. The CEO communicated this decision in a detailed note to staff, explaining two hard truths: the timing of travel's return was unknown, and when it returned, it would look different. The letter outlined how reductions were mapped to a more focused business strategy centered on everyday hosts and experiences, pausing investments in transportation and Airbnb Studios and scaling back hotels and luxury offerings. The approach emphasized waiting to communicate until all details were finalized, noting that transparency of only partial information can make matters worse.
- State facts clearly: Shared revenue impact and capital actions before announcing layoffs.
- Explain why: Linked cuts to a focused strategy, not temporary cost trimming.
- Commit to completeness: Delayed announcement until severance and support details were final.
Principles and support for people leaving
Airbnb's communication followed a clear set of principles: map reductions to future business strategy, do as much as possible for those impacted, maintain unwavering commitment to diversity, optimize for 1:1 communication for those affected, and ensure full detail before sharing. In the U.S. and Canada, departing employees received a personal calendar invite for a departure meeting with a senior leader, with their final working day set to allow time to process and say goodbye. Support measures were communicated transparently in the same note. U.S. employees received 14 weeks of base pay plus one additional week per year of tenure, with similar minimums internationally. The company dropped the one-year equity cliff for recent hires and allowed departing staff to vest on the upcoming date. Healthcare coverage was extended for 12 months in the U.S. through COBRA and through year-end 2020 elsewhere, plus four months of mental health support. Job support included a public alumni talent directory, an alumni placement team from internal recruiters, four months of career services, employee-offered alumni support, and permission to keep company laptops. The letter closed with direct messages to staying and leaving employees, acknowledging contributions and expressing sorrow.
- Personal delivery: Used 1:1 conversations wherever legally possible.
- Comprehensive care: Detailed severance, equity, healthcare, and job placement in initial announcement.
- Values-led tone: Centered messaging on belonging and human connection, consistent with company mission.