Airbnb CEO discusses the error he committed during Covid-19 layoffs: "A business is not a family."

Brian Chesky, Airbnb CEO and co-founder, advises against thinking of the workplace as a family, regardless of how much you like your colleagues.

In May, Chesky shared this lesson with Wharton psychologist Adam Grant on his "ReThinking" podcast, learned from personal experience.

In 2020, during the peak of the Covid-19 pandemic, Chesky informed his employees that the company would be conducting layoffs. He expressed his deep affection for all of them in a heartfelt note.

Tech companies pre-Covid were known for their popularity of workplace families, which encouraged employee loyalty through perks such as free food, dry cleaning, and in-office gyms, leading employees to spend more time in the office than with their actual families.

Chesky would express his appreciation differently today, he stated: Considering your workplace as family can be a powerful motivational tool, but it can also create challenges for both managers and staff in performing their duties.

"Chesky stated that he wrote the letter quickly due to limited time. He expressed his emotions while writing it and the company is not a family, as they had to make a pivot."

"We were once a family, but when we had to let go of employees, we couldn't fire family members," he said.

How to think about your workplace instead

How should you approach your workplace if you shouldn't think of it as a family? Reed Hastings, CEO and co-founder of Netflix, suggests treating it like a professional sports team.

"According to Hastings, who spoke to Stanford University's "View From The Top" interview series in February, it is crucial to adopt the mindset that everyone must fight for their job annually, similar to how athletes compete for their positions in professional sports. The key to success, as exemplified by the Stanley Cup, lies in assembling a team of exceptional hockey players who work together harmoniously."

When it comes to leadership, enforcing rules, reprimanding someone, or conducting layoffs can be challenging when using a family approach, according to Hastings.

""No matter what happens, you'll always be there for your family members, including your siblings, parents, and children, even if they end up in jail," he stated."

The more emotionally connected you are to your workplace, the more likely your boss can frequently request you to exceed expectations, as if you were a sibling.

Luna wrote that Hastings' approach is smarter because it uses a professional sports metaphor to create a sense of belonging at work while keeping performance and productivity at the forefront.

Luna observed that a positive and healthy workplace culture "acknowledges the transactional nature of this relationship."

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