When faced with the decision to lay off employees, my co-founder George and I chose to uphold our core values instead and kept the entire team together, asking everyone to take deep cuts to weather the storm.

Layoffs can be a crucial tool for CEOs to prepare their companies for the future, even though no one wants to make that decision.

Being more generous with equity for co-founders is beneficial, as it fosters long-term motivation to stay committed to the startup, especially during challenging times.

Founders who are less desperate for cash tend to retain more ownership of their companies and experience greater happiness and innovation.

When managing a company, it's essential to create incentives for employees to stay, especially if they face the risk of being fired.

Sharing bad news, like having only two months of runway, can actually motivate great startup employees to engage and find solutions together.

Firing people is one of the hardest parts of running a company, and first-time founders often wait too long to make these decisions. You need to fire employees quickly when they're not working out, as it's better for both the company and the employee, despite the pain it causes.

When a startup is failing, it's important to communicate openly with investors and ensure that employees are not left in the dark.

Keeping a small team during downturns can eliminate politics and unhappiness, as everyone feels they are making an impact and can contribute to fixing problems.