The value of Facebook's shares slumped on Tuesday following Monday's announcement that the Instagram co-founders Kevin Systrom and Mike Krieger were set to leave the company. More than the value of the company's stocks, Systrom and Krieger's departure also added to the troubles being faced by Facebook.
A CNBC report cited two management experts on why Facebook is struggling to hold on to its reputational presence and what could be expected from the company in the days to come. The senior associate dean at Yale, Jeffrey Sonnenfeld observed, "People are embarrassed, of course, about the reputation hits if not the undermining of democracy, the loss of privacy protection issues, and the lack of candour and transparency by both the [COO] Sheryl Sandberg and [CEO] Mark Zuckerberg.
Companies make mistakes but their repair job has been very disappointing." Meanwhile, speaking on the subject of founders leaving the company once it had been acquired, NYU Stern School of Business' professor Scott Galloway noted that that was a quite common occurrence.
"Control is really addictive. Founders are not good in bigger organizations when they are not in charge," he reiterated. However, having said that, he also voiced that the present working climes in Facebook could be additionally problematic despite these factors.
He emphasised, "Facebook is bad for the economy, bad for America, bad for the planet," he said. "But to be fair, I think Mark Zuckerberg and Sheryl [Sandberg] have built a fantastic team and they've been pretty good around retaining the employees."
Nonetheless, both experts went on to state that they expected Facebook to regain its lost lustre and its lost standing.