In April and March of 2020, as shelter-in-place mandates swept the globe and travel halted, bookings on Airbnb plummeted. With an 80% revenue loss, the company had to lay off nearly a quarter of its workforce.
"When you’re our size, and the business drops by 80 percent in eight weeks, it's is like being in an 18-wheeler going 80 miles-an-hour, and then you slam on the brakes," Airbnb co-founder and CEO Brian Chesky said. Chesky was interviewed by James Yan, MBA '23, for View From The Top, on the Stanford GSB campus.
"This is weeks after we were preparing for what was supposed to be one of the hottest IPOs in years. It was completely bewildering." Chesky was called upon to provide answers, guidance, and business decisions at a time when uncertainty ruled. But when there's only a blank slate, he says, it's time to deploy creativity.
"The hardest thing to manage in a crisis is your own psychology. People look in your eyes, and if you think you’re screwed, they see it in your eyes. You need to be optimistic. But it can’t be optimism that’s delusional. ... The optimistic mentality is the mentality you need to be creative. And you need to be creative because, in a crisis, you often have no good solutions."
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