Airbnb CEO adopts founder mode to fix post-pandemic chaos
Brian Chesky says he abandoned deferential management for a hands-on approach after Airbnb lost 80% of its business in 2020. He argues that effective leadership requires deep involvement in details rather than granting total autonomy.
Brian Chesky, CEO of Airbnb, has described a significant shift in his leadership style following the 2020 pandemic, a period during which the company lost 80% of its business in eight weeks. Chesky characterized his earlier management approach as deferential to experienced executives and conflict-averse, which he believes led to a sprawling and chaotic organization. He stated that Airbnb succeeded in spite of this earlier leadership, prompting him to adopt a "founder mode" approach inspired by Steve Jobs' recovery from near-bankruptcy and articulated in a talk at Y Combinator.
This model involves the CEO staying deeply involved in operational details, skip-leveling to gather information from two or three layers down, and making hard decisions to align the company. Chesky noted that almost the entire executive team left during this transition. He distinguished "empowerment" from "autonomy," arguing that CEOs should clear paths for employees rather than grant total independence. To establish standards of excellence, Chesky cited examples of rigor, such as iterating on a single press release 70 times. He argued that conventional advice to hire great people and get out of their way is a "death sentence" for young companies, asserting that the best CEOs are founders who maintain this hands-on mentality, citing Sam Walton, Walt Disney, Jeff Bezos, and Larry Ellison as examples.
Chesky also addressed the psychological impact of leading a $100 billion public company, describing the post-IPO period as a "loneliest moment" and an "inner crisis" where success did not bring expected happiness. He attributed much of his unhappiness to loneliness and a lack of vulnerability, noting that he had neglected personal relationships while working 100-hour weeks during the pandemic. Chesky credited former President Barack Obama, who became a mentor after Chesky wrote him a letter for help, with advising him to stay grounded by maintaining connections to his roots and old friends. He described reconnecting with high school and college friends, including a fisherman named Bobby, and realizing that he had to separate his identity from Airbnb. Chesky emphasized the importance of solitude, family, and a broader community, stating that he decided to trust new people despite the risk of betrayal, viewing it as preferable to living alone.