'I Didn't Know What I Was Doing': PayPal's Cofounder Says When It Comes to Layoffs, CEOs Should Help Employees Pack Their Boxes Max Levchin, cofounder of PayPal and CEO of Affirm, shares what he believes is the most decent way to handle the unpleasant task of carrying out layoffs.
By David James
With mass layoffs dominating headlines, PayPal cofounder Max Levchin shared his take on the most humane and empathetic way leadership should carry out layoffs.
On an episode of The Twenty Minute VC podcast, Levchin, who now serves as CEO of Affirm, admitted that he botched the first time he had to perform the unpleasant task.
"I didn't know what I was doing and I was terrified of owning the responsibility that I screwed up," he explained, saying he effectively hid from employees after they learned they had been let go.
Related: How They Grew $200k to $3M Side Hustles After Being Laid Off
But, he says, a friend advised him that rather than hiding in his office, the better place to be was "in the middle of the floor that's crying," he recalled. "Go be with the people. You'll feel better in the end and they'll feel better in the end."
Levchin said that helping his laid-off employees pack their boxes was good for them, good for him, and good for the employees who didn't get laid off.
"People understand that you tried with every possible strategic or tactical idea to not have to go through this," he explains.
If you had been laid off, would you have felt better or worse having your now-former CEO help you out the door? Let us know on social.
