Jack Dorsey steps down as Twitter CEO

Earlier on we had cited a report from CNBC’s David Faber, that Twitter CEO and Co-founder Jack Dorsey was reportedly going to step down from his executive role at the social media company, now as the day progresses, it’s now official as the company announced on Monday that Jack Dorsey is going to step down as the chief executive and will be replaced by chief technology officer (CTO) Parag Agrawal with immediate effect, but that Dorsey would remain on the board until Twitter’s stockholder meeting in 2022.

The surprise move ends Dorsey’s much-criticized tenure as chief executive officer of both Twitter and Square, his digital payments company, which led to Twitter stakeholders Elliott Management and billionaire investor Paul Singer calling on him to step down from one of those roles.

Dorsey returned to lead the company as CEO in 2015 despite being forced out of the post in 2008. He continues to serve as the CEO of Square, and last night tweeted “I love Twitter.”

In the company’s official statement, Dorsey says, “I’ve decided to leave Twitter because I believe the company is ready to move on from its founders. My trust in Parag as Twitter’s CEO is deep. His work over the past 10 years has been transformational. I’m deeply grateful for his skill, heart, and soul. It’s his time to lead.”

In a letter to employees, Dorsey told them he will serve out his term on the board of directors until “May-ish” when he will also leave that position, and explained his decision as follows:

Why not stay or become chair? I believe it’s really important to give Parag the space he needs to lead. And back to my previous point, I believe it’s critical a company can stand on its own, free of its founder’s influence or direction.

I want you all to know that this was my decision and I own it. It was a tough one for me, of course. I love this service and company…and all of you so much. I’m really sad…yet really happy. There aren’t many companies that get to this level. And there aren’t many founders that choose their company over their own ego. I know we’ll prove this was the right move.

New CEO Parag Agrawal joined the company in 2011 as an ads engineer, eventually taking the title of CTO in 2018. At that time, the company said, “In his capacity as CTO, he’s focused on scaling a cohesive machine learning and AI approach across our consumer and revenue product and infrastructure teams.” While Dorsey is well known for his interests in blockchain technology, cryptocurrency, and decentralization, Agrawal has been leading the company’s Bluesky effort to create an “open and decentralized standard for social media.”

In his own note to employees ahead of an all-hands meeting tomorrow, Agrawal says, “I joined this company 10 years ago when there were fewer than 1,000 employees. While it was a decade ago, those days feel like yesterday to me. I’ve walked in your shoes, I’ve seen the ups and downs, the challenges and obstacles, the wins and the mistakes. But then and now, above all else, I see Twitter’s incredible impact, our continued progress, and the exciting opportunities ahead of us.”