In a recent episode of The Twenty Minute VC podcast, Max Levchin, the CEO of Affirm and co-founder of PayPal, shared pivotal insights on managing layoffs with empathy. He recounted his early experiences with layoffs, expressing a desire to 'run and hide' due to his fear of mishandling the situation. However, he learned that being physically present to help employees pack their belongings was not only cathartic but beneficial for everyone involved. Levchin recalled advice he received: ‘You can play this from the comfort of your office — or in the middle of the floor that’s crying. Go be with the people. You’ll feel better in the end and they’ll feel better in the end.’ This hands-on approach was particularly impactful during Affirm’s recent layoff of 16% of its workforce, affecting 485 employees. He noted that a strong company culture makes the transition easier, as employees expressed understanding of the necessity behind the dismissals and expressed hopes of returning in the future. As Levchin put it, ‘If the culture of the company is great, the blow is much softer.’ This approach to empathy contrasts sharply with poorly handled layoff situations witnessed in the tech industry, highlighting the importance of leadership during challenging times.