Dick Costolo Steps Down as CEO of Twitter After Big #fail

It looks like the Q1 reporting day disaster that shaved $8 billion off Twitter’s value was too much to be borne — Dick Costolo is stepping down as CEO as of July 1, with former CEO Jack Dorsey replacing him on an interim basis.

Twitter’s first quarter results not only revealed another net loss for the company, but were also leaked before the markets closed, allowing investors to start their fire sale on Twitter stock early. Mediocre user growth numbers have limited the advertising gains Twitter has been making, and has been the cause of a lot of shareholder consternation since Twitter had their IPO in 2013. It’s finally cost Costolo his job, as, despite assurances that he was comfortable in his position as recently as months ago, Twitter released a statement today announcing the change at the top.

The statement has dueling quotes from Costolo and Dorsey, praising each other’s leadership while speaking of the company in glowing terms. The company also mentioned that it will form a search committee to find a permanent replacement for Costolo, which will be led by Peter Currie, a member of the board of directors, and will also include co-founder and former Twitter CEO Evan Williams.

In the statement, the company also chose to reaffirm its Q2 outlook, with revenue expected to fall between $470 million and $485 million. Twitter’s stock went up 7 percent following the announcement.

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