Affirm CEO Reflects on Empathy During Layoffs

Max Levchin shares lessons on leadership, emphasizing the importance of supporting employees personally during difficult layoffs.

Max Levchin, CEO of Affirm, discussed his approach to layoffs on the 20VC podcast, highlighting the value of personally assisting affected employees.
Levchin admitted to initial fear and responsibility for layoffs but found helping employees pack their belongings to be both cathartic and therapeutic.
Affirm conducted significant layoffs in 2023 and 2024, cutting 625 jobs in total due to overhiring during periods of high revenue expectations.
Levchin emphasized that strong company culture can soften the impact of layoffs, as departing employees expressed understanding and hope to return.
The CEO contrasted his empathetic approach with infamous examples of poorly handled layoffs, underscoring the importance of respect and transparency in leadership.