Facebook “instituted its biggest executive shakeup in its 15-year history this week,” Recode reported on Tuesday, a reorganization that will include a new blockchain effort and aims to address privacy concerns.
Facebook confirmed the report to CNBC but did not share any comments to Recode’s report.
The experimental blockchain group will be led by David Marcus, the executive most recently in charge of Facebook’s Messenger group. Marcus sits on the board of directors of Coinbase, an exchange for cryptocurrency (which uses the blockchain as its underlying technology), and joined Facebook from PayPal in 2014.
Marcus confirmed his new role in a tweet:
Facebook will now operate under three divisions, according to Recode: a “family of apps” group (including Facebook, Instagram, WhatsApp and Messenger), a new platforms division (including a blockchain technology team, augmented and virtual reality, enterprise technology and artificial intelligence) and a “central product services” team, which covers shared resources like ads, data analytics and security.
The report comes as Facebook has faced fallout over data privacy and “fake news,” amid revelations of data sales to outside firms like Cambridge Analytica, and evidence of Russian election interference. Meanhwhile, Facebook has tried to keep its ad revenue growing through newer, younger platforms like WhatsApp and Instagram.
WhatsApp co-founder Jan Koum announced last month he was leaving the company. As part of this week’s reorganization, most Facebook apps are getting new leaders, save Instagram, which will continue to be run by Instagram CEO Kevin Systrom, according to Recode.
Facebook separately announced on Tuesday that it added Jeff Zients, the CEO of Cranemere, to the board. Zients will join the audit committee, Facebook said, as will another recently added board member, Kenneth Chenault. Venture capitalist Marc Andreessen will also be on the committee but will no longer be on the compensation and governance committee.
—CNBC’s Michelle Castillo contributed to this report.
Source: Tech CNBC
Facebook shakes up its execs and adds new blockchain group