Airbnb lost 80% of its business in 8 WEEKS during COVID. They were...
Christopher Ho@Chr1stopherHo
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May 04, 2025
~3 min read
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Airbnb lost 80% of its business in 8 WEEKS during COVID.
They were bleeding $250M/month and on the verge of collapse.
One year later?
They IPO'd at $100B.
Brian's leadership turnaround is the greatest crisis management story in modern business. Here's how he pulled it off🧵
They were bleeding $250M/month and on the verge of collapse.
One year later?
They IPO'd at $100B.
Brian's leadership turnaround is the greatest crisis management story in modern business. Here's how he pulled it off🧵
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March 11, 2020: WHO had just declared COVID-19 a global pandemic. Travel was shutting down worldwide.
Within 72 hours, cancellations hit $1B.
Guests were panicking. Hosts were furious.
The company's cash reserves were draining at $250M/month.
Within 72 hours, cancellations hit $1B.
Guests were panicking. Hosts were furious.
The company's cash reserves were draining at $250M/month.
0:12
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By early April, their desperation had peaked. The April 2020 emergency funding deal was brutal:
• $1B in debt at 10% interest
• $1B in warrants at $18B valuation
• Previous valuation slashed from $31B
The company was fighting for survival.
• $1B in debt at 10% interest
• $1B in warrants at $18B valuation
• Previous valuation slashed from $31B
The company was fighting for survival.
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Chesky's first move was to analyze all active projects at Airbnb.
He emerged with a decision:
Kill 95% of them immediately.
"We're getting back to basics. We're returning to our roots as a host community."
He emerged with a decision:
Kill 95% of them immediately.
"We're getting back to basics. We're returning to our roots as a host community."
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Chesky decided on layoffs. His journal entry from that day, later shared with Fast Company:
"I have to let go of exceptional people. But if we don't, there might not be a company for anyone to return to."
The layoff numbers reveal Chesky's surgical precision.
"I have to let go of exceptional people. But if we don't, there might not be a company for anyone to return to."
The layoff numbers reveal Chesky's surgical precision.
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He cut exactly 1,900 people (25.3% of staff).
Not gradually. Not in phases.
One massive cut on a single Tuesday that completely reshaped what Airbnb would be post-pandemic.
The bloodletting wasn't random.
Not gradually. Not in phases.
One massive cut on a single Tuesday that completely reshaped what Airbnb would be post-pandemic.
The bloodletting wasn't random.
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Chesky spent 20 hours writing a 3,743-word layoff memo, sent it at 4:30am, then hosted an all-hands meeting hours later.
His calendar reveals he had 115 one-on-one conversations with executives in the 6 days prior.
The layoff package defied industry standards:
His calendar reveals he had 115 one-on-one conversations with executives in the 6 days prior.
The layoff package defied industry standards:
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He delegated three major workstreams to his most trusted lieutenants:
The company’s three co-founders took no salary for six months, and top executives took 50% pay cuts.
The company’s three co-founders took no salary for six months, and top executives took 50% pay cuts.
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Chesky made the decisive strategic bet that reshaped Airbnb.
The company's internal data showed two specific trends rising when all other travel collapsed:
• Local travel within 300 miles of home
• Long-term stays (30+ days) for remote work
The company's internal data showed two specific trends rising when all other travel collapsed:
• Local travel within 300 miles of home
• Long-term stays (30+ days) for remote work
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Chesky redesigned the entire Airbnb product, homepage, and algorithm around these two trends.
By Q3 2020, the strategy was working.
SEC filings later revealed Airbnb slashed its monthly burn rate from over $200M to $41M in just one financial quarter.
By Q3 2020, the strategy was working.
SEC filings later revealed Airbnb slashed its monthly burn rate from over $200M to $41M in just one financial quarter.
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Bookings hit pre-pandemic levels in rural areas. Chesky decided it was time.
He called the board and said: "We're filing for IPO. Now."
Most of them thought he was insane. The pandemic was still raging. The travel industry was down 70%.
He called the board and said: "We're filing for IPO. Now."
Most of them thought he was insane. The pandemic was still raging. The travel industry was down 70%.
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By December 2020, Airbnb moved forward with its long-awaited IPO, and the timing turned out to be impeccable.
In its stock market debut, Airbnb was valued around $47 billion at the IPO price, but demand soared the valuation to about $100 billion on the first day of trading.
In its stock market debut, Airbnb was valued around $47 billion at the IPO price, but demand soared the valuation to about $100 billion on the first day of trading.
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The true secret of Chesky's crisis leadership wasn't just the strategy. Even as Chesky took charge, he knew he couldn’t navigate the crisis alone.
He delegated most of the work so that he could focus on strategy and taking tough calls.
He delegated most of the work so that he could focus on strategy and taking tough calls.
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True leverage isn't about working harder. It's about building systems that maximize your unique abilities.
As Brian proved, the right system can multiply your impact by orders of magnitude and that starts with delegation.
But most founders don't seem to understand it👇
As Brian proved, the right system can multiply your impact by orders of magnitude and that starts with delegation.
But most founders don't seem to understand it👇
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But most founders try to control growth instead of enabling it.
Result?
• Decisions slow down
• Innovation dies
• Talent leaves
• Markets eat them
Result?
• Decisions slow down
• Innovation dies
• Talent leaves
• Markets eat them
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Top CEOs understand this.
That's why they have 3-5 assistants handling:
• Schedule coordination
• Email management
• Travel logistics
• Daily operations
They're not managing time. They're delegating it.
That's why they have 3-5 assistants handling:
• Schedule coordination
• Email management
• Travel logistics
• Daily operations
They're not managing time. They're delegating it.
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That's why I started a company to help ambitious founders/CEOs gain back their time while scaling their company
Delegation is the scaling law of entrepreneurship, if you don't understand it early, you'll find it incredibly hard to scale your company
athena.com/?utm_source=tw…
Delegation is the scaling law of entrepreneurship, if you don't understand it early, you'll find it incredibly hard to scale your company
athena.com/?utm_source=tw…
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If you found this thread valuable:
1. Follow me @Chr1stopherHo for more threads on entrepreneurship and delegation.
2. RT the first tweet
1. Follow me @Chr1stopherHo for more threads on entrepreneurship and delegation.
2. RT the first tweet