Twitter CEO Costolo steps down for Lack of growth

It was made known that Twitter chief executive Dick Costolo is stepping down and will be replaced on an interim basis from July 1 by co-founder Jack Dorsey, the company said Thursday.

The move comes with the one-too-many messaging platform struggling to boost its user base after a much-anticipated public offering in 2013.

Costolo guided the San Francisco-based firm through its initial public offering, but growth has been disappointing and the company has yet to show a profit.

A Twitter statement said Costolo would remain as a member of the Twitter board and that Dorsey would stay as CEO of Square, the financial technology group he founded, during the search for a new chief executive.

Twitter said it formed a committee that will work with “a leading executive search firm to assist in conducting a global search which will consider both internal and external candidates” for CEO.
Dorsey said in the statement: “The future belongs to Twitter thanks in large part to Dick Costolo’s dedication and vision.”

In its latest earnings report, in April, Twitter said it had a net loss in the quarter of $162.4 million.
The company said the number of active monthly users rose above 300 million, but that figure has been growing a pace too sluggish for many investors, and below rivals in social networking.

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