Citation
A Message from Co-Founder and CEO Brian Chesky
TL;DR
1,900 employees laid off (25% of workforce)
Brian Chesky's May 5, 2020 memo announcing 1,900 layoffs (25% of Airbnb's workforce) is a masterclass in strategic catabolism. The memo explicitly describes the company's crisis response in terms that mirror biological starvation phases - entering lower-power mode, breaking down non-essential tissue to preserve essential functions.
What makes this case remarkable is that Airbnb avoided the permanent metabolic suppression (adaptive thermogenesis) that typically follows deep cuts. By being strategic about what to cut - protecting core product and engineering while eliminating non-core activities - the company emerged stronger, IPOing at $68 billion just seven months later.
Key Findings from Chesky (2020)
- 1,900 employees laid off (25% of workforce)
- Strategic focus on core product during reduced metabolic state
- Non-core activities eliminated to preserve essential functions
- Company IPOed at $68B valuation 7 months later