Poshmark’s CEO Manish Chandra Reverses Pricing Change Amid Backlash, Earning Praise for Leadership

/in /tarafından

Poshmark’s recent pricing shift backfired, leading to widespread seller frustration, but CEO Manish Chandra’s response is being praised as exemplary leadership by experts. Known for connecting buyers and sellers of new and secondhand fashion, Poshmark introduced a controversial pricing adjustment on October 3, shifting part of the platform’s sales fee from sellers to buyers. Instead of spurring sales, the change sparked a significant backlash, with sellers reporting declines in transactions and a negative impact on their earnings.

In response, Chandra issued a direct and detailed apology, pledging to restore the previous fee structure on October 24. “The outcome of the change did not meet our expectations, and I sincerely apologize for the disruption and impact that this has had on you,” he wrote, addressing the platform’s sellers. He also outlined actionable measures, such as rebates for sellers affected during the fee change period, showing a clear commitment to listening and adapting based on feedback.

Leadership strategist Talia Fox, CEO of KUSI Global, praised Chandra’s approach as an example of effective crisis management. According to Fox, Chandra’s transparency, agility, and focus on making tangible changes represent the elements of a genuine apology, in contrast to the “wordsmithing” that can often leave such messages feeling hollow. Chandra’s actions align with Fox’s TCT framework for leaders handling difficult situations: timing, culture, and track record.

Despite the positive reaction, some users were dissatisfied, questioning why a middle ground wasn’t considered to satisfy both buyers and sellers. Fox suggests that in such situations, CEOs should focus on the people most integral to the company’s success. For Poshmark, that’s the sellers, who are essential to its business model. Chandra’s rapid response reflects a commitment to maintain a healthy seller base, even amid challenges.

 

Microsoft Accuses Google of Running “Shadow Campaigns” to Influence European Regulators

/in /tarafından

Microsoft publicly accused Google of orchestrating “shadow campaigns” in Europe, claiming Google is backing a consortium to sway European regulators against Microsoft. According to a blog post by Microsoft’s attorney Rima Alaily, Google allegedly hired DGA Group, a consulting firm, to form the Open Cloud Coalition, which includes certain European cloud companies.

Alaily asserted that the coalition is an “astroturf group” organized to undermine Microsoft and influence policymakers under the guise of promoting “a fair, competitive, and open cloud services industry.” Alaily linked a flyer for the Open Cloud Coalition, which aims to address competition in cloud services across the UK and EU, with Google reportedly backing it financially and providing resources.

Google, under increasing scrutiny in both Europe and the U.S. — where it faces its second antitrust trial — responded, emphasizing its own concerns over Microsoft’s alleged anticompetitive practices. Google maintains that Microsoft’s licensing agreements for Windows Server create unfair conditions that limit customer choice and stifle innovation, impacting both cybersecurity and market competitiveness. In September, Google filed a complaint with the European Commission, specifically calling out Microsoft’s Windows Server licensing practices. Microsoft counters that its clients benefit by saving up to 36% when using Windows Server on its own cloud infrastructure compared to Amazon’s.

Alaily further alleged that Google has repeatedly aimed to disrupt Microsoft’s standing in both the U.S. and Europe. She highlighted Google’s financial support for the Coalition for Fair Software Licensing, which in 2023 petitioned the U.S. Federal Trade Commission to investigate Microsoft’s cloud licensing practices. Additionally, Alaily claimed that Google offered $500 million to members of the Cloud Infrastructure Services Providers in Europe to oppose a potential antitrust settlement related to Microsoft, which eventually was resolved in July.

The two tech giants, competing for dominance in cloud services, online advertising, and productivity software, continue to clash, with Google’s alleged covert campaigns adding fuel to their intensifying rivalry.

 

Meet OpenAI’s First Chief Economist: 3 Things You May Not Know About Dr. Aaron “Ronnie” Chatterji

/in /tarafından

OpenAI recently appointed Dr. Aaron “Ronnie” Chatterji as its first chief economist to lead economic research on AI’s societal impacts, including its effects on the global economy and workforce. According to OpenAI’s press release, Dr. Chatterji will contribute to understanding how artificial intelligence can drive growth, solve complex challenges, and foster long-term prosperity.

Larry Summers, an OpenAI board member and former U.S. Treasury Secretary, praised Dr. Chatterji’s expertise, noting that his insights would guide OpenAI in developing impactful AI tools. Here are three lesser-known facts about Dr. Chatterji:

  1. Duke University Professor for Nearly Two Decades
    Dr. Chatterji has taught at Duke University’s Fuqua School of Business since 2006. As a distinguished professor in business and policy, he developed an advanced corporate strategy course that leverages case studies to discuss how evolving political trends influence corporate decision-making. Dr. Chatterji holds a bachelor’s degree in economics from Cornell University and a Ph.D. from UC Berkeley’s Haas School of Business.
  2. Service in Presidential Economic Policy
    With experience in both the Biden and Obama administrations, Dr. Chatterji has held significant economic policy roles. Most recently, he served as acting deputy director of the National Economic Council from September 2022 to August 2023, where he helped execute President Biden’s CHIPS and Science Act. In 2010, he worked as a senior economist at the Council of Economic Advisors under President Obama.
  3. Prolific Author and Researcher
    Dr. Chatterji has published over 30 research papers, co-authored Can Business Save the Earth? Innovating Our Way to Sustainability (2018), and co-edited The Role of Innovation and Entrepreneurship in Economic Growth (2022). His research often focuses on how innovation and entrepreneurship impact economic growth, aiming to apply this expertise to support OpenAI’s mission of broadly distributing AI’s benefits.