American social media giant Twitter are undergoing its first leadership change in five years after the company’s chief executive Dick Costolo announced that he would stepping down from the position Friday afternoon. He is going to be replaced by Twitter co-founder Jack Dorsey as interim CEO until the company decides to name permanent new leadership.
The soon-to-be ex-Twitter CEO Dick Costolo will leave the position starting with July 1st. The company’s board of directors has stated that its future CEO might be from within or outside of the company. His interim replacement, Jack Dorsey, is one of Twitter’s co-founders and currently also CEO of payments company Square Inc. Dorsey previously served as the company’s first CEO between 2007 and 2008, and remained on the board after he was replaced by Evan Williams, Costolo’s precursor.
However, Dorsey will not be part of the search committee for a new CEO, indicating that there might be chances of transforming his interim position into a full time one. The Twitter co-founder declined to comment on whether he’d accept such an offer or not. The search committee will be comprised of Williams and his fellow board members Peter Currie and Peter Fenton.
The interim CEO and Costolo himself both said that the decision was made solely on the desire of the latter to “move on”, but rumors suggest that it might be a result of intense criticism that the company has received from Wall Street in the past months regarding its nearly stagnating growth and unsure future prospects. Twitter posted its worst quarterly revenue growth in Q1 of this year, making its stocks plummet more than 20 percent.
Such figures might have instilled the thought into the board or Costolo himself that he might not be the right person to guide the company out of this slump, even though he presided over most of its initial growth from a start-up company to a social media giant. Most of Twitter’s woes have begun after the company went public in 2013, with high-profile being replaced or leaving at a fast rate. Currently, its shares value 20 percent less than they did during its first day of trading.
Also, in a somewhat unrelated announcement, the company said that it will drop its 140-word limit on its platform for direct messages, aiming probably at a larger audience interested in using the platform to exchange longer messages and inquiries. The word limit for its tweets will remain the same as until now.
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