Twilio’s Co-founder Steps Down

by Warren Seah

Shares of Twilio surged after the customer-engagement software company announced that its co-founder and long-time CEO, Jeff Lawson, is stepping down following pressure from investors who are urging the company to pursue a sale. The stock experienced a more than 5% increase in morning trading, reaching $72.77. Although shares have seen a 45% growth over the past year, they still remain below their 2021 peak of approximately $435 per share.

In addition to the CEO transition, Twilio appointed Jeff Epstein, the lead independent director, as the new chairman of the board. Taking the helm as the new CEO is Khozema Shipchandler, who previously served as the president of Twilio Communications. Shipchandler, a former executive at General Electric, has also held positions as Twilio’s chief financial officer and chief operating officer.

The changes come as a result of pressure from investors who have acquired significant stakes in Twilio and have been advocating for changes within the company. Despite experiencing a decline in stock prices following a surge in 2020 and 2021, Twilio has been focused on cost reduction measures, including staff reductions, over the past two years.

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