Colleen McCreary
Chief People Officer
Confluent
Episode 86
Hard Times Reveal True Values: How Prioritizing People Builds Resilient Companies
Current chapter: Built by People podcast features insights from world's top HR leaders
Built By PeopleJuly 30, 2025 · 15:46
Thesis
“Company values and mission are truly tested and proven during difficult times. By prioritizing people through transparent communication, thoughtful alternatives to drastic measures like layoffs, and consistent trust-building, organizations can achieve long-term success and resilience, even after severe financial setbacks.”
Show notes
In February 2020, Credit Karma was weeks away from closing a major acquisition. Then revenue dropped more than 70% overnight. The deal fell apart. COVID hit. The board wanted layoffs. Colleen McCreary said no.
McCreary had spent 30 years in tech HR — from college recruiting at Microsoft in the '90s to CPO roles at EA, Zynga, and Credit Karma. She'd seen companies reach for layoffs the way others reach for painkillers: fast, reflexive, and often destructive to the very thing you're trying to protect. Instead of cutting, Credit Karma implemented tiered pay cuts, pivoted employees into new internal roles, and offered a voluntary "pay to quit" program for anyone who didn't want to stay for the hard part. Out of 1,200 employees, 12 took the money and left.
What happened next: eight consecutive quarters of record revenue and customer growth, and less than 10% attrition for the next two years. McCreary is candid about how close it came to going differently — and clear about what made the difference: values that were actually operationalized under pressure, transparent communication with employees before decisions were finalized, and a leadership team that shared the weight instead of leaving it on the CPO's desk.
- How Credit Karma avoided mass layoffs during a 70%+ revenue collapse — and why it worked
- The mechanics of the "pay to quit" program: structure, risk, and what surprised her about the outcome
- Why transparent communication before decisions are finalized builds more trust than announcements after
- The difference between a CPO who owns culture and a leadership team that does
- What 8 quarters of post-crisis record growth taught her about the long-term ROI of treating people well
This episode is brought to you by Previ — an employer network that saves employees thousands on the necessities they already pay for, at no cost to the company.
What you'll take away
- 1Company values and mission are truly tested in hard times; adhere to them as a guiding light to build enduring trust.
- 2Prioritize direct, candid, and transparent communication with employees, setting clear timelines to reduce anxiety and build confidence.
- 3Resist knee-jerk reactions like immediate mass layoffs during financial crises, exploring alternatives such as temporary pay cuts, internal mobility, and voluntary separation programs.
- 4Leverage the entire leadership team, sharing the burden of complex decisions rather than carrying it solely as a People leader.
- 5Thoughtful crisis management, focused on employee well-being, can lead to significant long-term business advantages, including sustained high revenue growth and exceptional retention.
What most organizations get wrong
- •Instead of mass layoffs during a 70%+ revenue drop and immense board pressure, implement temporary pay cuts across the board and pivot employees into new internal roles.
- •Offer a voluntary "pay to quit" program ("off the bus") during a crisis, trusting that top performers will stay and allowing those not committed to leave, minimizing disruption.
- •Challenge the conventional view of layoffs as a quick fix, likening them to a "diet drug" instead of a sustainable, long-term strategic approach.
In Colleen's words
“I didn't study recruiting or HR or anything like that, but at Microsoft in the '90s, and was one of those people who loved meeting people, welcoming them into the world.”
Illustrates her unconventional entry into HR, driven by a passion for people.
“Literally almost overnight, our revenue started to drop more than 70%.”
Highlights the extreme, sudden nature of the financial crisis they faced.
“And the mission of the company was to help people make financial progress. And so the idea of doing layoffs outside of my own distaste for layoffs was just horrendous, right?”
Connects company mission directly to the decision to avoid layoffs, showing values in action.
“We will pay you to quit. So we will pay you to quit right now. I had never done that before. I had no idea whether or not it would work.”
Reveals a highly unconventional and risky strategy to manage workforce reductions.
“During that time, we saw less than 10% attrition for the next 2 years, which is unbelievable.”
Demonstrates the powerful long-term positive outcome of their people-first crisis strategy.
“I always say that the chief people officer, we're not the CEO of happiness, we're not the CEO of culture, like, the whole leadership team owns that.”
Clarifies the true role of a CPO, emphasizing shared responsibility for culture.
The problems this episode addresses
- •Experiencing a sudden and drastic revenue decline (over 70% overnight), forcing immediate and critical financial decisions.
- •Navigating the complexities and uncertainties of a major company acquisition being put on hold due to antitrust concerns.
- •Maintaining employee morale, trust, and transparency when faced with widespread economic, health (COVID-19), and social crises.
- •Facing pressure from company boards and external stakeholders to implement conventional, often drastic, measures like mass layoffs.
- •Dealing with a management team composed of first-time leaders who lack experience in making difficult workforce reduction decisions.
- •Managing the rapid transition of an entire workforce from in-office to remote work and back during a period of intense instability.
- •The challenge of retaining top talent when offering temporary pay cuts or voluntary separation packages.
In this episode
Built by People podcast features insights from world's top HR leaders
Built by People
I've been in tech for 30 years and got my start in recruiting
In the Elevator With Chief People Officers
Credit Karma experienced significant revenue drop in 2020 amid tightening credit markets
Crazy 2020 at Credit Karma
The company was founded to help people make financial progress, not layoffs
Have You Forced the Company to Lay Off Workers?
We go out to employees and we have this 3 steps of pay cuts
One company's decision to raise pay for employees
Khalid: Decision to not lay people off impacted company culture and employee morale
Decisions Made During The Great Recession
Colleen says company had values around empathy and progress during difficult times
After the Layoff, What Lessons Did We Learn?
Colleen says the only key to success is leveraging the team that you have
A Chief People Officer's Last Words
Topics covered
Organizations and entities mentioned
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