Doing redundancy right

The role of internal communication is often underplayed in many organisations, so credit should be given where credit is due.

“…be honest, clear and direct…”

As a business, Airbnb would not be first to mind for having lots of employees – an online, peer-to-peer marketplace for homeowners to let properties doesn’t scream ‘people-heavy operation’. However, the San Fran-based platform actually has 7,500 employees across 24 countries – or did.

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Last week, CEO Brian Chesky – who co-founded Airbnb in 2008 – sent an internal email announcing, with seemingly-heartfelt regret, that nearly a quarter of Airbnb employees (c.1,900) will be made redundant.

As he mentions in his empathetic open letter, “…for a company like us whose mission is centered around belonging, this is incredibly difficult to confront”. Chesky goes on to do something that should be front of mind for anyone dealing with a challenging communication topic – be honest, clear and direct.

“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…” he says.

“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… I have done my best to stay true to these principles.”

Airbnb’s redundancy principles

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Former-employee engagement

Chesky and team have recognised that the way Airbnb needs to operate will have to be far leaner. However, leaner doesn’t necessarily mean… meaner. Empathy in action here.

As he put it: “We have great people leaving Airbnb, and other companies will be lucky to have them.”

On top of letting everyone leaving keep their Apple laptops – an “important tool to find new work” – the package around leavers is nothing short of impressive:

  • Talent Directory – a public-facing website to help those laid off find new jobs with potential employers (as of 11th May, it’s had 250k visitors);

  • Recruiters staying with Airbnb will support their former colleagues find their next role;

  • Access to a specialist career transition and advice service for four months (RiseSmart); and

  • With the pandemic being an ongoing threat, the company has also given healthcare cover around the world until the end of 2020 (12 months in the US) and four months’ worth of mental health support.

Airbnb is playing the long game. It is taking care of the talent it has/had to genuinely help them, but also ensure that when the world returns to something nearer normal, that talent will remember them, be advocates or potentially return to strengthen the business.

What next?

Coronavirus has already irrevocably changed the global travel and hospitality industries. When they return, sometime in 2021/22, it will not resemble travelling as we know it. One thing seems certain, though – Airbnb will be remembered in high regard.

So, what do you think? Have I gone a bit too fan-boy over a mid-30s tech start-up entrepreneur? Or does his style, and that of Airbnb, resonate with you? Let me know.

NB – I realise there are a lot of people going through a torrid time with redundancy around the world, as well as others who do not have work, a home or a support network. This blog is purely a look at how one company, albeit in a privileged position, has proactively managed its redundancy process.