New Sheriff in Taboola's Town; Same Lazy Playbook.

Last week news broke that Taboola initiated a 5% workforce reduction. The story in itself is not remarkable. Everybody knows that the businesses of media and technology (among others) are undergoing dramatic structural changes that force serious introspection regarding skillset and market position. We also know that artificial intelligence tools can blah blah automate, blah blah enhance. What strikes me about this news is that this particular reduction in force was preceded by a new leader at the company as Chief Business Officer. I do not know the new CBO, who by many accounts, has a fine reputation after roles in numerous high-level positions and prestigious assignments at world renowned companies. I’m sure he does great charitable work, is a snappy dresser and helps little old ladies cross the street. However, it seems that upon taking this new job, his first order of business was to perform the old standby that new leaders often do: take a big job, built on the backs of hundreds of people who made it possible for you to join and then, fire scores of those very same people. Sadly, newly hired big shots need a signal that they’re the new sheriff in town and will prove it by making a big move in reducing the workforce. I disagree with this tactic.

I have occasionally been entrusted to take over business teams over the past twenty years. This was true in my roles at NYTimes, ScanScout, BlipTV, Maker Studios, Tenor and Stream Elements, and in no case was my first move to summarily fire a layer of employees.

In every one of those circumstances, I inherited a team of people who were there before me—growing the business. Whether due to a merger, sale, re-org, or simply being brought in as a new hire, I was given control over the current sales, marketing and/or general business teams. At no point did I think, “I’ll fire a bunch of these people just because, and I have air cover to do it because I’m the new person coming in.” In one instance, the CEO recommended that I immediately dismiss an incumbent. I resisted and had this person remain on the team and things worked out well.

A former mentor told me that one of his old bosses would ask who the number one and number two sellers were on any new team he was about to manage. He would then fire the number two seller immediately. When asked why, he replied, “Well, I want to let the team know that I’m in charge and I’m not going to fire the best seller.” That behavior always struck me as infantile, cruel and ridiculous. At another of the stops I took over, an incumbent senior leader approached me within my first days on the job and bluntly asked if she should be looking for a new job. She explained that she was assuming I would bring in my own team. I quickly replied, “I don’t have anyone in my back pocket who is more important to me than the people working here because you’re the ones who have built this business. You can leave if you like, but I would prefer to have you stay.” She stayed and continued a very productive career at the company. Eventually, we all enjoyed a successful exit.

Each time I would take over a new team, one of the more rewarding aspects of this new role was getting to know and work with new leaders. They would sharpen my skills. They would force me to adapt and learn. They would teach me new methods of business. I would always grow as a person and leader as a result. I would implore those of you reading this to do similar, if given the opportunity.

I have known Taboola’s Founder/CEO Adam Singolda for 15+ years and he’s a terrific leader, thinker and entrepreneur. So, was it necessary to have a RIF that coincided so soon with a new, respected leader joining the company? Did Adam hire the new CBO under the expectation that he should do this as his first piece of business? Was the team bloated or costs too high? Were they looking for an easy stock bump? I have no idea. I do know that the CBO brought in members of “his team” from the outside to take over leadership positions. Was the current team too slow or not possessing the new skills needed for a new mode of business? Perhaps, but knowing how good Adam is, not likely. It sure smells like a page out of the lazy playbook.

What is true though, is that dozens of stellar people who built that business for many years and made it possible for improvements to be made are now out of jobs because they were dumped by the new sheriff in town who’s looking to make his mark.

And that’s a shanda.