Affirm CEO Max Levchin candidly shared his early experiences with workforce reductions, revealing that he initially wanted to "run and hide" the first time he orchestrated layoffs for the company.
In a recent podcast interview, Levchin discussed his evolution as a leader during difficult personnel decisions. "I didn't know what I was doing and I was terrified of owning the responsibility that I screwed up," he admitted, reflecting on his initial experiences with corporate downsizing.
The PayPal cofounder learned a transformative lesson from a friend who advised him to be physically present during layoffs. "You can play this from the comfort of your office — or in the middle of the floor that's crying. Go be with the people. You'll feel better in the end and they'll feel better in the end," the friend told him, as Levchin tells.
Affirm, a fintech company based out of the US, has undergone significant workforce reductions, cutting 16% of its staff (485 employees) in 2023 and an additional 140 jobs in early 2024. Despite these challenging transitions, Levchin believes that strong company culture can mitigate the emotional impact of such events.
"If the culture of the company is great, the blow is much softer," Levchin explained. He noted that many departing employees expressed understanding of the business necessity and hoped to return in the future.
Levchin's approach stands in contrast to other tech industry layoff narratives, while some companies opted to fire employees in huge numbers just via a simple Zoom call. By personally helping employees pack their boxes and providing direct support, Levchin says he aims to maintain dignity and mutual respect during difficult organizational changes.
Check out our live coverage of Super Bowl LIX and find details on how to watch Super Bowl 2025 half time show live on Times of India.end of article