Jack Dorsey has resigned from Twitter as CEO, effective immediately citing the reason of a founder-led company potentially becoming a reason for failure; Parag Agrawal has been appointed as the new CEO.
As a Co-Founder, Dorsey has been with Twitter for 16 years and has seen the company grow from a start-up to now hosting 187 Mn DAUs on average, and has also been in positions of Exec Chair, Chair and Interim-CEO.
He has been instrumental in shaping up the microblogging and social networking site and major changes such as character limit and not adding an edit button to Tweets to maintain the platform’s authenticity of being built like SMS service.
Along with Dorsey thinking it could be detrimental for a company to be founder-led as “that’s severely limiting and a single point of failure” he also shared why now is the right time to move on.
One of the reasons is Parag Agrawal, who started off as an engineer and was previously the CTO of the company, unanimously being appointed as the CEO by the board after considering all options. Dorsey has placed deep trust in him to manage the company and believes he is what the company needs.
Bret Taylor being appointed as Board Chair has been cited as another reason by Dorsey to exit the company now, as he gains confidence from Taylor being in a leadership role in the board.
Dorsey will serve through the board for his remaining term, to help Agrawal and Taylor through the transition, and will move on from the company as he believes it’s important for the company to be “free of its founder’s influence or direction”.