Dorsey steps down as CEO of Twitter. Co-founder and former Chairman Evan Williams takes his place. Williams makes a post on Twitter’s blog:
While the board of directors and the company have nothing but praise for where Jack has taken us, we also agree that the best way forward is for Jack to step into the role Chairman, and for me to become CEO. Jack will remain on the board and be closely consulted for all strategic decisions, while I take on day-to-day operations with the support of Biz, Jason, Greg, and the rest of this impressive Twitter team.
Costolo steps down from the CEO position, but will remain on the board. Dorsey becomes Interim CEO.
Twitter shares plunge on the New York Stock Exchange, dropping 5.6% to $29.27 which is the lowest level ever. The share price has fallen a total of 45% in four months. Co-founder Dorsey:
We haven’t done a great job at aligning the entire company around our total audience strategy.
Sources say Dorsey is expected to be named the company’s new permanent CEO as early as October 1. Dorsey will apparently continue to be CEO of Square.
Twitter officially announces Dorsey is permanent CEO. Costolo leaves the board. Dorsey hires Bain as COO.
In a posting to the Securities and Exchange Commission, Twitter announces that 336 jobs will be cute, 8% of its workforce.
The restructuring is part of an overall plan to organize around the Company’s top product priorities and drive efficiencies throughout the Company. The Company intends to reinvest savings in its most important priorities to drive growth…The roadmap is also a plan to change how we work, and what we need to do that work. Product and Engineering are going to make the most significant structural changes to reflect our plan ahead. We feel strongly that Engineering will move much faster with a smaller and nimbler team, while remaining the biggest percentage of our workforce. And the rest of the organization will be streamlined in parallel.
An SEC filing (document) reveals the company is officially seeking an initial public offering, as well as financial information: In the first half of 2015 Square took losses of $77.5 million on revenue of $560.5 million. In 2014, the company reported gross payment volume of $23.78 billion. The filing reveals retail the biggest source of transactions for the company constituting 21 percent of its gross payments volume. Other sectors include services, food, beauty, contractor, and transit. The filing also says Dorsey’s role as the CEO of Twitter and Square is a risk factor:
Jack Dorsey, our co-founder, President, and Chief Executive Officer, also serves as Chief Executive Officer of Twitter. This may at times adversely affect his ability to devote time, attention, and effort to Square.
At the Twitter Flight Developer Conference Dorsey apologizes for Twitter’s past behavior and says he is committed to try to improve developer relations.
Our relationship with developers got confusing, unpredictable. We want to come to you today and apologize for the confusion…We need to have a better conversation with our developer community, with everyone in this room… We can’t stand alone. We need your help…Tweet at us what you’d like to see at Twitter. Tweet with the hashtag #helloworld, we will take all of this information and input to make decisions over time to make sure the platform is something you’re proud of and will use more and more.
Dorsey says Twitter is considering to expand the character limit of tweets from 140 characters to 10 000.