On December 27, last week, Twitter's chief technology officer and vice president of products announced his departure. Twitter stock was hit hard by the impact, with the company's stock down 11 percent over the weekend.
Analysts believe that if investors lose confidence in the company, the current trading price of $16/share (trading price of $19/share a week ago) could fall below $14/share. This would be a huge drop to its initial trading price of $44.94/share in 2013 and its all-time high of $74.73/share.
Analysts at Mizuho Securities said in a research note that "if advertisers believe twitter is a less stable platform, then this could jeopardize Twitter's business." ”
Meanwhile, CTO Adam Messenger and VP of Product Josh McFarland also chose to resign last Tuesday. Adam Messenger said he would take a break, while Josh McFarland plans to join venture capital firm Greylock Ventures as a general partner.
Co-founder and CEO Jack Dorsey said in a statement, "The company's strategy has a direct and positive impact on user growth and engagement, and every day in the future will be better." ”
Social media companies are favored for their audiences and the rapid growth of their advertising businesses. Twitter has struggled to attract new users, but the stagnation in user growth has caused a significant obstacle to Twitter's profitability.
Twitter's turnover in the third quarter was $616 million, up 8 percent from the same period last year, the data showed. In the fourth quarter, earnings are expected to be $7.4121 million, up 4% year-over-year.
In fact, since Jack Dorsey returned to CEO, the company's performance has not resumed under his leadership. Instead, it was forced to cut 9% of its workforce to improve profitability.
Michael Pachter, an analyst at Wedbush Securities, noted that Twitter's top brass has changed completely since Jack Dorsey took over. "It could make investors lose confidence in them," he said. ”
Attached is a list of senior executives who left in 2016 as follows:
Vice Presidents of Product Kevin Will and Mike Falland
Katie Stanton, Vice President of Global Media
Alex Roth, Vice President of Engineering
Small Video General Manager Jason Toff
Skip Speer, Vice President of Human Resources
Vice President of Commerce Nathan Hubbard
Vice President of Business Unit Jana Messerschmitt
Director of Public Relations Natalie Chrissy
Adam Bain, Chief Operating Officer of Sales
Ricky Alphonse, Vice President of Global Online Business Unit
Chief Technology Officer Adam Messinger
CICC's view:
As a world-renowned social media company, Twitter did a really poor job of retaining middle-level leaders, and 2016 was even tougher. Looking back at Twitter's list of senior leaders in January this year, it is unexpected that 60% have left, including not several vice presidents in key positions, and many high-profile departures are voluntary. Factors influencing separation include the work environment and stable leadership.
In terms of leadership, a clear development plan and vision for the company is key, but Twitter doesn't seem to have it yet. 2016 is already difficult, 2017 will face greater challenges, for Twitter, how to retain employees need to be solved urgently.
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