SAN FRANCISCO—Twitter CEO Dick Costolo is stepping down, after critics squawked about the social messaging company’s disappointing financial performance—and its recent stock slide.
Co-founder and Chairman Jack Dorsey, who served as CEO during Twitter’s early years, will temporarily take the reins while the San Francisco company looks for a permanent replacement.
Investors reacted positively to the move, driving Twitter shares up nearly 6 percent in late trading after the announcement Thursday afternoon. Both Dorsey and Costolo, however, expressed confidence in the company’s direction and said the board isn’t seeking major changes.
“I believe in the course the company is on and the management team’s ability to fulfill that and execute on it,” Dorsey said during a joint conference call with Costolo and Wall Street analysts.
Both men characterized Costolo’s departure, effective July 1, as voluntary. The 51-year-old Costolo, who once worked as a stand-up comedian and also holds a degree in computer science, said he began talking with Twitter directors about leaving last year. Costolo had been CEO for five years and led the company through a successful stock market debut in 2013. He will not receive any severance package.
