The tweet came from Twitter IR, the official account of Twitter Inc.’s investor relations department.
“Dick Costolo to step down as CEO, will remain on Board, and Jack Dorsey appointed Interim CEO, effective July 1,” it said.
It won’t come as much of a surprise to investors that the troubled social media firm’s chief is falling on his sword.
Twitter has struggled to define its vision following its initial public offering in November 2013, Bloomberg reported.
Costolo, who was named chief executive in October 2010, presided over the IPO and the stock’s decline of more than 50 percent after peaking near the end of 2013.
Twitter has added users at a slower pace than projected, and it has been eclipsed in size by newer social apps such as Instagram, WhatsApp and Facebook Messenger, all owned by rival Facebook Inc.
Its advertising efforts have also failed to gain much traction with marketers.
The choice of a temporary replacement for Costolo isn’t a surprise, either.
Dorsey, 38, a Twitter co-founder who sent the company’s first-ever tweet in 2006, has returned to Twitter before.
He came back during 2011 and 2012 to help oversee product development at the company, leaving to focus on digital-payments company Square Inc., which he co-founded and where he remains chief executive.
His appointment signals that the firm is focusing on improving its product, which lets users post short messages, videos and photos, after a slew of leadership changes in the past five years.
Twitter said Costolo won’t receive any severance pay.
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