Facebook Stocks Tumble Following Exit Of Two Top Executives And Recent Technical Issues
Following the exit of two of its highest ranking executives, stock prices for Facebook immediately fell by as much as 1.6 percent during after-hours trading. The company's CEO, Mark Zuckerberg, distributed a memo to employees, which was later published on the company's blog, announcing the official resignation of Chris Cox and Chris Daniels.
Cox was the company's Chief Product Officer, while Daniels was the vice president of Facebook's messaging app subsidiary, WhatsApp. The sudden departure of the company's high-ranking executives occurred amidst the company's various international issues, which includes a recent criminal investigation by federal prosecutors into illegal data deals with various electronics manufacturers.
Cox was one of the pioneering employees of the social media giant. He was originally hired in 2005 as a software engineer. Cox had worked on several products, including the current platform's news feed. He quickly climbed through the ranks and became the company's first vice president of products in 2008. Since then, Cox has overseen the company's various apps, including Messenger, Instagram, and WhatsApp.
Zuckerberg mentioned in his blog post that he has already chosen the company's current vice president of product management, Will Cathcart, to take over Daniels role in WhatsApp. Meanwhile, the CEO explained that he still hasn't decided on who he will assign to replace Cox. In the meantime, Zuckerberg has asked all of the heads of each of the company's products to report directly to him. In his post, Zuckerberg expressed his sadness regarding his colleagues' decisions. He also thanked both executives for all of their contributions and for helping make the company what it is today. Unfortunately, the CEO neglected to expound further on the reason for their sudden departure.
The departures happened right after Zuckerberg announced last week that he was revamping the Facebook platform to become more secure. The CEO revealed that they are already making plans to fully encrypt communications on their various apps. Messages and other content will reportedly also be deleted after a certain period of time from their servers to ensure that they cannot be used for nefarious purposes.
It's also a big coincidence that the sudden departure of both executives occurred right after the company's social media platform had suffered a massive outage. Users were unable to login and access their accounts on the company's various platforms, including Facebook and Instagram. The outage had lasted for more than 24 hours, with service being restored at different locations at different times. The company has so far blamed the outage on server-related issues.