Twitter Inc is making some serious changes since Jack Dorsey was confirmed as CEO last week. On Tuesday, the firm said that it would begin laying off one in every twelve staff on its payroll in the weeks and months ahead. The move is part of efforts to cut costs and to court Wall Street as the firm seeks to endear itself with investors. The latest move showing that Dorsey is ready to turn the firm around is the hiring of new executive chairman.
Business Insider reports that Twitter has delivered a strong coup has it lured Alphabet Inc chief business officer away to become its chairman. Omid Kordestani is one of the key people that worked on the restructuring that changed Google from jack-of-all trades into a holding firm called Alphabet with many business fronts. Delivering the Omid coup against Google shows that Dorsey can run two firms even as Square files for IPO.
Twitter shows a rebirth with Kordestani
Twitter has been finding it hard to cut costs, unlock growth, attract top talent, and keep investors happy because of its strong bonds with its past – the bonds often make it hard for the firm to initiate change. Twitter has for long been accused of having a board that has many former CEOs, making it hard to think outside the box and solve problems with a third eye-view.
Omid brings his wealth of experience to the firm. CEO Jack Dorsey, in a statement to welcome him said, “Omid is a proven & experienced leader, who will directly help & coach me and our leadership, and help us recruit the best folks to Twitter.” Analysts are also sure that Omid would help get the firm back on track to growth. James Cordwell, an analyst at Atlantic Equities, said, It’s quite a coup… He was very well-respected at Google.”
Another analyst, James Cakmak of Monness, Crespi, Hardt & Co. says he” has incredible business acumen and can help fine-tune the strategy and attract talent to Twitter,” Omid confirms the depth of his value in a tweet saying, “It’s rare you get to be at a company with an amazing business that’s also transforming the world… I’ve had good fortune to be at three: Netscape, @google, and now @twitter.”
Square files for IPO
It is no longer news that Jack Dorsey will be the CEO at two public firms when Square’s IPO goes live. Square has filed an IPO and part of the risk factor for Square says, “Jack Dorsey, our co-founder, President, and Chief Executive Officer, also serves as Chief Executive Officer of Twitter. This may at times adversely affect his ability to devote time, attention, and effort to Square”. The statement holds true for Twitter as much as it holds true for Square. However, the hiring of Omid might bring more sense of direction even if Dorsey gets distracted with Square.