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With Facebook at ‘War,’ Zuckerberg Adopts More Aggressive Style

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timlangeman

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New approach causes turmoil, driving several key executives from the company and creating tensions with longtime Chief Operating Officer Sheryl Sandberg

Mark Zuckerberg gathered about 50 of his top lieutenants earlier this year and told them that Facebook Inc. FB -5.72% was at war and he planned to lead the company accordingly.

During times of peace, executives can move more slowly and ensure that everybody is on board with key decisions, he said during the June meeting, according to people familiar with the remarks. But with Facebook under siege from lawmakers, investors and angry users, he needed to act more decisively, the people said.

.. On Friday, that tension was on display when, during a question-and-answer session with employees at Facebook’s headquarters in Menlo Park, Calif., he blasted a fresh round of critical news coverage as “bullshit,” according to the people familiar with the remarks.

One employee at the session asked if Facebook could deter leaks by publishing an internal report about how frequently offenders are found and fired. Mr. Zuckerberg said Facebook does fire leakers, but the root cause was “bad morale” perpetuated by attacks in the media.

.. He believes this tougher management style is necessary to tackle challenges being raised both internally and externally, according to a person familiar with his thinking.
.. Mr. Zuckerberg’s new posture could trouble those who feel his “move fast, break things” mantra from Facebook’s early days contributed to many of the company’s current problems. It also has led to confrontations with some of his top reports, including Ms. Sandberg, who has long had considerable autonomy over the Facebook teams that control communications and policy.
.. This spring, Mr. Zuckerberg told Ms. Sandberg, 49, that he blamed her and her teams for the public fallout over Cambridge Analytica
Ms. Sandberg later confided in friends that the exchange rattled her, and she wondered if she should be worried about her job.

.. Mr. Zuckerberg also has told Ms. Sandberg she should have been more aggressive in allocating resources to review troublesome content on the site

.. The heads of some other key Facebook units didn’t survive conflicts with Mr. Zuckerberg.

Mr. Zuckerberg clashed with the co-founders of Instagram

.. The co-founders of WhatsApp likewise left after disagreements with Mr. Zuckerberg over how to generate more revenue from the messaging-service

.. More recently, Mr. Zuckerberg forced out Brendan Iribe, co-founder of Oculus VR, in part because of a disagreement about the future of the Oculus Rift virtual-reality headset

.. Facebook remains hugely profitable, with net income of more than $5 billion in the third quarter, but its margins are under pressure in part because of its increased spending on security.

.. Mr. Zuckerberg has said Facebook is in the midst of a three-year turnaround ending in 2019 to strengthen its defenses against the risks posed by having an open platform.

.. All told, about a dozen senior or highly visible executives disclosed their resignations or left Facebook in 2018. In May, Facebook announced a major reshuffling of top product executives in a way that helped free up Mr. Zuckerberg to oversee a broader portfolio within the company.

.. This turmoil at the top of Facebook has made it difficult for the company to execute on some product decisions and shore up employee morale, which has been sinking over the last year along with the stock price, which has fallen 36% since its peak. Many employees are frustrated by the bad press and constant reorganizations, including of the security team, which can disrupt their work, according to current and former employees.

.. Scrutiny of Facebook has only escalated in the past week after the New York Times reported its use of opposition-research firms tasked with exposing critical information about Facebook’s detractors, including one called Definers Public Affairs. Ms. Sandberg and Mr. Zuckerberg both said the decision to employ the firm was made by Facebook’s communications officials.

Ms. Sandberg’s comments in particular have angered many people on those teams, according to people familiar with the matter, given how closely she tracked and managed Facebook’s media strategy, sometimes getting involved in wording changes. In the internal Q&A Friday, Ms. Sandberg said she took full responsibility for the actions of the communications team.

.. In September 2017, Erskine Bowles, the head of the audit committee and a former Clinton White House official, told Ms. Sandberg and Mr. Zuckerberg that he felt they needed to take the issue of Russian interference on the platform much more seriously.

“This is going to be much bigger than you think,” Mr. Bowles said

.. Later, after the Cambridge Analytica disclosure, the board urged Mr. Zuckerberg to name an executive who would be in charge of corralling Facebook’s response to that matter and resolving other issues before they metastasized, said a person familiar with the matter. After that, he put Ms. Sandberg in charge of that effort.

Mr. Zuckerberg also sought advice from a mentor, former Microsoft Corp. Chairman and CEO Bill Gates. He recommended Microsoft’s model, which relies on Brad Smith to oversee its corporate, external, and legal affairs. Mr. Smith wears the title “president” and reports directly to the CEO.

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