10 Founders FIRED From Their Own Businesses
#10: Dov Charney
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American Apparel The founder and former CEO of American Apparel faced termination from the company in December 2014 primarily due to a series of controversies and alleged misconduct. The board of directors accused Charney of multiple instances of violating company policies, including allegations of misconduct and inappropriate behavior in the workplace. Charney, known for his provocative and controversial management style, had been the subject of numerous legal issues related to his conduct. The decision to terminate Charney's employment came after an internal investigation and a series of disciplinary actions against him. The board cited a lack of confidence in Charney's ability to lead the company professionally and in adherence to corporate standards.
#9: George Zimmer
Men’s WearHouse In June 2013, George Zimmer, the founder and longtime face of Men's Wearhouse, was unexpectedly forced out from his position as executive chairman. The company, known for its slogan "You're going to like the way you look. I guarantee it," cited a difference in vision and management approach as the primary reasons for Zimmer's departure. Zimmer disagreed with the board's decisions and expressed concerns over the direction of the company, leading to a breakdown in their relationship. The board, in response, took the unusual step of severing ties with Zimmer, who had played a prominent role in shaping the company's brand. The circumstances surrounding Zimmer's exit were marked by public statements and a subsequent legal dispute between Zimmer and the company.
#8: Aubrey McClendon
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Chesapeake Energy The co-founder and former CEO of Chesapeake Energy faced a forced departure from the company in 2013 due to a combination of financial and ethical concerns. Under McClendon's leadership, Chesapeake Energy engaged in controversial financial practices, including taking on substantial debt to fund acquisitions and exploration projects. The company faced scrutiny for its complex financial dealings, corporate governance issues, and potential conflicts of interest involving McClendon's personal investments in Chesapeake's wells. Amid shareholder concerns and a declining stock price, the board of directors conducted an internal investigation that revealed undisclosed loans taken by McClendon using company assets. Facing mounting pressure and legal challenges, McClendon resigned from Chesapeake. Tragically, he died in a car accident one day after charges related to the loans were announced.
#7: Mike Lazaridis and Jim Balsillie
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BlackBerry These co-founders and longtime leaders of BlackBerry (formerly Research In Motion or RIM), faced a challenging period that led to their eventual departure. As BlackBerry struggled to compete with the rising dominance of smartphones, particularly the iPhone and Android devices, the company's market share declined significantly. Lazaridis and Balsillie faced criticism for their slow response to changing market trends and their failure to innovate and adapt. In 2011, amid declining sales and market share, Lazaridis and Balsillie stepped down from their co-CEO roles and handed the leadership reins to Thorsten Heins. The move was seen as an effort to bring in fresh leadership and revive the company's fortunes. BlackBerry continued to face difficulties, including the failure of its BlackBerry 10 platform.
#6: Sandy Lerner
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Cisco Sandy Lerner, along with Leonard Bosack, co-founded Cisco Systems in 1984 and played a crucial role in its early success. However, in 1990, Lerner was forced out of Cisco, a company that went on to become a global technology giant. The circumstances surrounding her departure were complex and involved disagreements with the board of directors over the company's future direction. One significant issue was the strategic vision for Cisco. Lerner was reportedly more focused on the development of innovative technology, including routers and switches, while the board was leaning towards a more business-centric approach. Additionally, there were clashes over management styles and corporate culture.
#5: Sean Rad
Tinder In 2014, Sean Rad temporarily stepped down from his role as CEO of Tinder amid a series of controversies and legal challenges. The decision was prompted by a lawsuit filed against Tinder which alleged misconduct.To address the negative publicity and legal issues, the board of directors decided to suspend Sean Rad as CEO. Chris Payne, a technology executive, was appointed as the interim CEO during Rad's suspension. The move was part of the company's effort to navigate the legal challenges and restore confidence in its leadership. Later in 2014, Sean Rad returned to the CEO role after the legal matters were addressed and settled. Despite the temporary disruption, Tinder continued to grow in popularity and became a leading player in the online dating industry.
#4: Binny Bansal
FlipKart Sachin Bansal and Binny Bansal, who were unrelated, were two co-founders of Flipkart. Walmart's acquisition of a majority stake in the Indian e-commerce giant changed their fortunes. While the Bansal duo had been instrumental in Flipkart's success, their departure was influenced by strategic differences with Walmart. Sachin Bansal's exit preceded the acquisition in May 2018, and he sold his entire stake in the company. Binny Bansal initially stayed on as Group CEO after the acquisition but later resigned in November 2018. This was a different sort of departure, because, although initially framed as a mutual decision, it was clouded by allegations of personal misconduct.
#3: Travis Kalanick
Uber The high-profile co-founder and former CEO of Uber was pressured to resign in June 2017 amid a series of controversies and scandals that plagued the ride-sharing company. Allegations of a toxic workplace culture and questionable business practices created a storm of negative publicity. A key turning point was a blog post by former Uber engineer Susan Fowler, detailing her experiences of harassment and the company's response. Additionally, there were reports of a video showing Kalanick berating an Uber driver. Facing intense scrutiny and mounting investor pressure, Kalanick resigned to allow the company to move forward with a change in leadership.
#2: Sam Altman
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OpenAI Sam Altman, to the shock and surprise of everyone in the tech world, was ousted in November 2023 as CEO of OpenAI. Altman was in many ways the public face of AI technology, and the reasons for his ousting are still unclear. The unconventional structure of the organization meant that the firm's profit & non-profit objectives were increasingly at odds, especially given the rapid pace of development of generative AI & how it was clashing with the board's emphasis on effective altruism. As none of the firm's investors were represented on the board, the news caught all off-guard. After an attempt to bring him back, Altman landed on his feet at Microsoft within days of his firing. Since Microsoft has committed $10 billion in cash and cloud computing credits to OpenAI, and owns a 49% stake in its for-profit arm, until the dust settles, the situation remains fluid. Before we get to our top pick, here are some honorable mentions. David Neeleman, JetBlue Airways Co-founder stepped down after widespread service disruptions in 2007 Jack Dorsey, Twitter The social media titan co-founder resigned in 2021, but it’s unclear if he was pushed out Jerry Yang, Yahoo Resigned in 2012 after criticism, including mishandling of Microsoft's acquisition bid Andrew Mason, Groupon Resigned in 2013 amid growing dissatisfaction from investors
#1: Steve Jobs
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Apple He may have been a visionary, but Steve Jobs was ousted from Apple, the company he co-founded, in 1985. Jobs, known for his intense management style and ambitious projects, clashed with then-CEO John Sculley over strategic direction and product development. The breaking point came when the board of directors sided with Sculley, leading to Jobs' removal from his managerial role.Jobs' departure was a pivotal moment in Apple's history, as the company eventually struggled without his leadership. However, he later returned to Apple in 1997 when the company acquired a computer company he founded during his hiatus. Jobs' triumphant return marked a remarkable turnaround for Apple, eventually leading to the creation of iconic products like the iPod, iPhone, and iPad. Is there a founder we missed? Let us know in the comments.
