Empathy in a Crisis: How Airbnb Turned Layoffs into a Communications Masterclass
- Axel Menzel
- Aug 10
- 4 min read
Turning one of the hardest business decisions into a benchmark for empathetic leadership.
When companies face large-scale layoffs, the challenge is never just operational or financial - it’s deeply human. Employees don’t just lose jobs; they lose daily routines, friendships, and in many cases, a sense of identity. How a company manages that conversation often determines whether it leaves behind bitterness or respect.
In May 2020, in the middle of the COVID-19 pandemic, Airbnb was forced to make one of the toughest calls in its history: letting go of 1,900 employees, roughly 25% of its workforce. What made this restructuring stand out was not just the scale, but how it was communicated. CEO Brian Chesky’s letter to staff is now widely studied as a model of empathetic leadership in crisis.
Background – The Trigger
Timeline: Early 2020 brought a sudden collapse in global travel. Lockdowns and border closures wiped out Airbnb’s core business almost overnight.
Financial Impact: Revenue dropped by about 80% in just eight weeks.
Strategic Shift: The company froze most non-core projects (like transportation and Airbnb Studios) and doubled down on its core home rental platform.
Global Scope: Layoffs affected every region — North America, Europe, Asia-Pacific, and Latin America — across central and local teams.
Chesky later explained:
“We were facing the most harrowing crisis in our history. It was clear we would have to part ways with people who helped build Airbnb." (Airbnb Blog Statement, May 5, 2020)
The Communication Strategy – What Airbnb Did Differently
1. Leadership - Owned, Not Delegated
Chesky personally wrote and delivered the message to all employees. It was written in clear, human language, without corporate jargon, signalling that the decision was deeply personal to leadership.
2. Structured, Transparent Narrative
The letter answered key questions in sequence:
Why – Financial realities and the global travel shutdown.
What – The exact number of roles affected, across all teams and countries.
How – Criteria for role reductions, focusing on strategic priorities, not individual performance.
What Support – Detailed severance and benefits.
Acknowledgement – Recognition of every departing employee’s contribution.
3. Radical Transparency in Scope
Chesky openly shared:
1,900 employees would leave, in every function and geography.
This was a strategic restructuring, not a performance-based cut.
By stating the scale and process upfront, Airbnb reduced speculation and rumours.
4. Severance and Benefits – Above Market Norms
Airbnb’s packages varied by country to align with local law, but the U.S. package drew particular attention for exceeding the norm:
14 weeks’ base pay plus 1 additional week per year of service.
12 months’ health insurance in the U.S. (where there is no legal mandate).
Equity: Departing employees could keep their vested stock options, with adjusted terms for unvested equity in some cases.
Career Support: Outplacement services and a public Talent Directory for alumni.
Equipment: In some regions, employees could keep laptops to aid in job searches.
Context: In the U.S., severance is not mandated by law and is often limited to 2–4 weeks per year of service, with health coverage rarely extended more than a few months (Source: U.S. Department of Labor, SHRM). Airbnb’s offer went far beyond this. In Europe and other regions, statutory minimums and collective agreements applied, with Airbnb often adding voluntary enhancements.
5. Tone of Empathy
Chesky acknowledged the emotional toll:
“We are not saying goodbye to teammates, we are saying goodbye to friends. This is not your fault.”
This validated employees’ feelings and reinforced that their contributions remained valued.
Reactions and Impact
Employee Sentiment: Many departing employees publicly expressed gratitude for the respect and clarity with which they were treated.
Media Coverage: Outlets like Harvard Business Review and The New York Times labelled it a “gold standard for crisis communication.”
Employer Brand: Instead of damaging Airbnb’s image, the process reinforced its reputation as a values-driven company.
Key Learnings for Other Organisations
💡 Leaders must own tough messages → Authenticity comes when the decision-maker speaks directly.
💡 Be radically transparent → Detail what’s known, admit what isn’t, and avoid vague promises.
💡 Offer real, tangible support → Severance, benefits, and career services matter more than platitudes.
💡 Address the human impact → Recognise emotions, don’t gloss over them.
💡 Protect your employer brand → Departures handled well can create long-term advocates.
A Blueprint for Crisis Leadership
Airbnb’s 2020 layoffs were painful, but they showed that compassion, transparency, and business necessity can coexist. By delivering clear information, above-standard support, and empathetic leadership, Airbnb protected not only its operations but its culture and reputation.
As Chesky put it:
“I am deeply sorry that we are in this position. I believe that we will be defined by the way we treat people at this moment.”
Sources that we used to create this article
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