Should We Be Concerned About Twitter's Mass Exodus?

Social media site Twitter Inc TWTR has suffered through a great deal of scrutiny over the past year. The company has struggled to gain and keep new users, and many have questioned whether the firm will be able to turn things around and generate enough advertising revenue to continue operating.

This week, more bad news for the little blue bird surfaced in the form of reports that four high-level execs were leaving the company.

Several Departures

Senior Vice President of Engineering Alex Roetter, Vice President of Global Media Katy Stanton, Vice President of Human Resources Skip Schipper and Senior Vice President of Product Development Kevin Weil all abandoned the firm this week.

That's nearly half of the company's executive level employees; traders were understandably worried about what would come next for the tech firm. Analysts quickly began to criticize Twitter, pointing out the company's 62 percent turnover rate and downgrading their views on the stock.

Related Link: Twitter: A $5 Stock?

What Could It Mean?

Speculation about what the mass exodus means has been unavoidable, as investors wondered what would prompt so many execs to abandon their jobs without another already lined up. Some are expecting to hear more bad news about the company in the coming months and believe the departure was an effort to jump ship early. Others say it could be a human resources problem, but the majority of guesses are pointing to something negative.

Dorsey's Bet On The Future

However, there are some who believe the loss of four top-tier employees could be a good thing for the company.

CEO Jack Dorsey promised a turnaround when he took over at the helm in October, and some say this is a part of his efforts to move the firm forward. Though Dorsey claims the execs all left for their own reasons, some say it was likely under pressure to quit. All four were hired under Twitter's former CEO, a sign that it could be part of Dorsey's vision for the future of the company.

A Precarious Position

There are a lot of scenarios that could lead to four top-level employees leaving a company, but the majority are negative. For that reason, most traders are steering clear of Twitter until the company has proven its staying power. While those who are optimistic about the stock say the departures are part of the firm's revamp under a new CEO, Dorsey has yet to share his vision with the world, making it more difficult to believe it.