Twitter CEO Dick Costolo resigns amid criticism
Dick Costolo had in the recent past, made significant changes to the top level management of Twitter. Costolo, however, decided to resign in the wake of criticism from Wall Street for not achieving a higher growth, as compared to other social media sites, such as Facebook.
In the meantime, Twitter’s co-founder Jack Dorsey has been appointed as the interim Chief Executive Officer whilst another person is shortlisted as a permanent choice for the coveted post of CEO. It must be borne in mind that Jack Dorsey is the co-founder of Twitter and also former chief. Dick Costolo had led Twitter as its CEO since the past five years. During the recent past, Wall Street had severely criticized him for Twitter’s sluggish and dismal user growth. One of the other reasons why Costolo faced criticism was that he had failed as CEO to market or present Twitter’s features as appealing.
Twitter shares rose more than 7 percent in after-hours trading immediately after it was announced that Costolo was stepping down. Mr.Costolo and his team had tried to highlight the early progress his team had made on revamping the company’s products. However, just last week, one of Dick Costolo’s biggest supporters, Chris Sacca publicly called for a change in leadership. According to Twitter, Dick Costolo had led the company through its largest growth period for the past five years and had taken it public.
However, it is not curtains for the former CEO as Costolo will stay on as a member of the board of Twitter whilst Dorsey takes charge as interim chief.
— dick costolo (@dickc) June 11, 2015
The resignation of Costolo and subsequent appointment of Jack Dorsey as interim chief have raised serious questions about the future of Twitter. Whether or not Twitter will benefit from Costolo’s resignation and who will assume the mantle of permanent CEO will determine the future course of the organization.