Why Twitter Cofounder Gave Away $200 Million Stake
How often do you hear of entrepreneurs give $200 million worth of stock to employees?
I know it doesn’t happen nearly as often as it should, but it happened at Twitter. Not long after Jack Dorsey announced that he is taking the CEO position in the company.
Why would an entrepreneur give away $200 million of hist stock, about 1% of the company? The move to boost employee morale seems to come at the right time. Recently, we learned about Twitter layoffs as part of an attempt to restructure the company. Twitter is letting 336 people go. The good news for the laid off employees is that there are many employers who are anxious to hire them. Facebook and Nest are just a couple of companies who are inviting ex Twitter employees to join them.
Twitter is far from a falling knife of tech, but laying people off is never good news. It makes you wonder when a tech company downsizes its engineering department. That’s like Southwest Airline downsizing their pilots.
I do hope that Twitter continues to be a key player in tech. I am also looking forward to the changes Jack Dorsey will bring to Twitter.