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

At Next Jump, employees cannot be fired for performance issues; instead, they receive coaching and support, similar to how we would help our children.

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.

When laying off employees due to financial constraints, it can actually improve morale among remaining staff, as they see the founder is committed to the company's survival.

Bob Chapman, CEO of Barry-Wehmiller, believes in 'heart counts' over head counts, and he implemented a furlough program to avoid layoffs during tough times.

In the current economic climate, startups need to hire even more slowly and be cautious about their growth strategies to ensure sustainability.

When the COVID-19 pandemic hit, we had to pivot quickly. Instead of laying off our team as advised, we chose to be transparent and asked everyone to take pay cuts to weather the storm together, which ultimately helped us find our product-market fit.

The economic downturn has prompted Y Combinator founders to take a sober look at their situations, assessing whether their strategies are beneficial for their businesses rather than just for investors.

One key lesson I learned from Y Combinator is the importance of firing people who aren't a good fit quickly, as it affects the entire team's morale and productivity.