Airbnb CEO predicts no future value for people managers

Airbnb's chief says "people managers" will soon become outdated.

While discussing AI's influence on the "Invest Like The Best" podcast this Tuesday, CEO Brian Chesky mentioned, "I think people managers will lose their relevance in the future."

"Those who have numerous repeat one-on-one meetings won't make it," Chesky stated. "Such leadership won't be effective. You need to understand the context."

Chesky is among a rising number of tech leaders suggesting that the role of "pure managers" is becoming redundant in the AI age — individuals whose primary job is managing others. 

As companies continue to lay off employees, often pointing to AI as a crucial reason, Chesky's remarks highlight that middle management faces growing challenges.

During the pandemic in May 2020, Airbnb implemented extensive layoffs. A company representative said they have no current layoff plans. First-quarter earnings are expected to be reported on Thursday.

Coinbase CEO Brian Armstrong mentioned Tuesday the elimination of "pure managers" as the company revealed a 14% workforce reduction. 

"We are simplifying our organisational structure to have no more than five layers under the CEO/COO," he wrote in a memo to staff.

In March, Block's head, Jack Dorsey, stated in a blog post with Sequoia partner Roelof Botha that "a constant level of middle management is unnecessary" following significant layoffs at the company this year. 

Meanwhile, Meta leader Mark Zuckerberg has advocated the benefits of reducing team layers for a long time.

Chesky emphasized that to endure the AI age, managers must engage more deeply in the core work of their company.

"It's about managing the tasks, not the individuals," Chesky explained. If you're a lawyer, "you need to actually review the case law and get involved."

Coinbase's CEO Brian Armstrong suggested that in the AI-driven age, managers should act more like "player-coaches," directly working with their teams.