Twitter CEO Jack Dorsey boosts employee morale after big layoffs
Twitter CEO, Jack Dorsey, announced that he will be giving a third of his company stock to the employee equity pool. The shares are valued at around $200 million and make up about 1 percent of the company.
Dorsey tweeted that he made this decision because he wants to “reinvest directly in our people.” This move comes at a time when employee morale may be low at Twitter, since Dorsey announced earlier in October that they will be laying off 336 people. The layoffs may have lowered the employees’ confidence in the company, but this move shows that Dorsey is looking out for them.
As for me: I'd rather have a smaller part of something big than a bigger part of something small. I'm confident we can make Twitter big! ✌️
— Jack (@jack) October 23, 2015
After three months as interim CEO, Dorsey’s title was made permanent in October. Dorsey came to the company while it was facing steadily decreasing stock prices, as its value had dropped close to $16 in the two months before he started as CEO. Despite the financial state of the company, Dorsey took on the challenge, all while continuing his job as CEO of the Square mobile payment company. Layoffs may not have been a popular option, but Dorsey felt Twitter had hired too many people in their current financial situation.
“Product and Engineering are going to make the most significant structural changes to reflect our plan ahead. We feel strongly that Engineering will move much faster with a smaller and nimbler team, while remaining the biggest percentage of our workforce,” said Dorsey in his memo regarding the layoffs.
Dorsey also announced in October that he plans on giving away 40 million shares of his company, Square, to a charitable foundation that supports the arts. If Dorsey continues to make these altruistic moves, it could bring a lot of positive PR to Twitter in its time of need.
How will this move help Twitter’s image? Will Dorsey be able to turn the company around? Leave a comment or talk to me on Twitter @Karbowski_Devon.