Twitter co-founder Jack Dorsey has been tapped as interim CEO.
Lionel Cironneau / AP
Dick Costolo is stepping down as CEO of Twitter, following months of questions about the company's performance under his leadership. Jack Dorsey, Twitter's cofounder, has been tapped as interim CEO.
Costolo, who took the reigns of the company in 2010 from cofounder Evan Williams, presided over a rock four and a half year tenure during which he took the company public in 2013 and dealt with the unforgiving public market since. The lowest point of his term occurred this past April, when a weak earnings report was published early by a web crawling company, the combination of which sent Twitter's stock downward and shook public confidence in the company.
Twitter shares rose about 7 percent in after-hours trading on Thursday after the news was announced.
"I am tremendously proud of the Twitter team and all that the team has accomplished together during my six years with the Company," Costolo said in a statement. "We have great leaders who work well together and a clear strategy that informs our objectives and priorities." He also hailed Jack Dorsey as a great leader, dedicating an unusual level of praise towards an interim CEO.
Just two weeks ago, Costolo was singing a different tune, giving no indication of a potential exit in an interview with Re/Code's Kara Swisher. "I don't worry about that at all. The board and I are completely in sync. Believe me, I don't worry about that at all," he said of his job security. "I think you have to have thick skin to be the CEO of any company, but this one particularly. You have to be resilient and be mentally tough and focus on what you're going to focus on."
The suddenness of the transition came as a surprise. Costolo was scheduled to speak next Tuesday at a technology conference sponsored by Bloomberg.
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