Twitter Inc ’s stock is down over 40% in the three months since Jack Dorsey took charge. And investors are increasingly getting frustrated at the fact that Dorsey in yet to unveil a major new strategic blueprint. Neither has he enacted any sweeping operational changes that could restore some confidence.
So what has Dorsey been up to in his second coming? Business Insider reports that putting a stop to the brain drain has been among his top priorities thus far.
Dorsey Pep Talks Halt Twitter Exodus
“When people are pissed off and want to leave, he will sit down with them,” one person familiar with the matter, told the news site. “He can be very convincing.”
In fact, the person interviewed named several Twitter employees who were on the brink of leaving. But timely pep talks from Dorsey forced them to reconsider.
However, Jack Dorsey’s famed powers of persuasion haven’t always succeeded. The most recent instance of that happening was when a trio of high profile product executives left in July, when Dorsey was in charge as interim CEO.
“The word on the street is that everybody is vulnerable” to leaving, this person said.
Another major challenge has been recruiting new talent. Dorsey managed to pull off two significant coups by poaching Omid Kordestani, and rehiring Jessica Verrilli, from Google. But the top corp development job still remains vacant. And the word on Wall Street is that Twitter Inc is struggling to convince prospective candidates.
The Twitter – Square Shuttle
Jack Dorsey‘s full-time job as CEO of digital payments firm Square is also causing some disquiet among Twitter old-timers. Square, which recently went public, is located a few blocks away from Twitter’s SF headquarters.
Sources say that this juggling of roles has made for a somewhat unorthodox arrangement. Dorsey is said to be working full-time at both firms by utilizing his famous time management discipline.
Mornings are at Twitter, while afternoons are spent at Square. Mondays are reserved for meeting senior managers at both Twitter and Square, while Wednesdays and Fridays include 30-min “check-ins” with middle management, according to sources that spoke to Business Insider.
This unusual setting has created its fair share of hurdles, especially during the Square IPO road show last year. Important decisions at Twitter that needed Dorsey’s approval, for instance, were delayed, another source familiar with the matter said.
Shares of Twitter Inc closed last week at $17.94. The stock is down 23% year to date. That compares to an 8% decline in the S&P 500.