In a significant move to bolster staff morale following recent layoffs, Twitter CEO Jack Dorsey has pledged a substantial portion of his own shares to remaining employees.
- Dorsey announced the layoff of 8% of the workforce, affecting 336 employees, mainly from the engineering division.
- Faced with a cumulative loss of nearly $2 billion, these layoffs were deemed necessary to stabilise the company’s finances.
- Dorsey is offering one-third of his Twitter shares, valued at approximately £130 million, to the employee equity pool.
- The response to this decision has been mixed, with reactions ranging from scepticism to appreciation expressed on social media.
Following the dismissal of 8% of its workforce, Twitter, under the leadership of CEO Jack Dorsey, is attempting to navigate financial challenges while addressing employee morale. The layoffs impacted 336 employees, primarily hitting the engineering sector, and were part of a strategy to counterbalance a substantial financial deficit amounting to nearly $2 billion.
In a move to reinvigorate the company’s workforce, Dorsey announced via Twitter that he plans to allocate a third of his own shares in the company to its employee equity pool. This allocation, worth almost £130 million, represents a bold effort to invest directly in the company’s employees.
Media interpretation of this gesture varies significantly. Some view it as a strategic morale booster, with critics from Re-code Magazine labelling it as a ‘project morale boost’. Meanwhile, some Twitter users expressed scepticism, questioning the timing of the gesture immediately following the layoffs. @schwa noted the potential connection between the layoffs and this equity move, suggesting it aims to ameliorate a potential morale crisis.
Conversely, the gesture has also been met with gratitude from several employees. User @bohan highlighted the leadership style, expressing, “This is why I work at Twitter. Generosity & compassion will always prevail, and steward leadership is the best leadership. Thank you.”
Dorsey himself reinforced the decision with a statement underscoring his vision for Twitter’s future. He stated, ‘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!’ Despite the significant transfer of shares, Dorsey remains financially secure, also holding a substantial stake in Square, valued at approximately $1.6 billion.
The decision by Twitter’s CEO to share his equity reflects an innovative approach to handling workforce morale and financial stability amidst corporate challenges.
