Jeff Lawson, founder, CEO and chairman of Twilio, speaks at a press convention in the course of the Mobile World Congress on March 1, 2017 in Barcelona, Spain
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Twilio co-founder Jeff Lawson on Monday said he’s stepping down as CEO of the enterprise communications software program firm. The transfer comes as firm grapples with two activist investors who’ve been pushing for significant changes on the firm.
In a regulatory submitting asserting the transfer, the corporate additionally mentioned that Twilio anticipated fourth quarter income and revenue to return in above its prior steerage.
Shares of Twilio are up about 6.4% on the information.
“The time has come for me to go the reins of this extraordinary firm to a brand new CEO to steer Twilio by way of its subsequent chapter,” Lawson mentioned in a blog post asserting the change.
Khozema Shipchandler, a longtime Twilio govt, will assume the highest position, efficient Monday. Shipchandler can even take a board seat.
Lawson can even step down from Twilio’s board, the place he had served as chairman. Jeff Epstein, a present board member and associate at Bessemer Venture Partners, will take the lead seat.
“I’m honored to step into the CEO position,” Shipchandler mentioned in a release. He additionally instructed that the corporate would take a more durable have a look at “underperforming” companies, consistent with what activists have been agitating for.
Still, the transfer isn’t more likely to stave off the activists at Anson Funds and Legion Partners. Both are pushing for the corporate to promote itself or fully divest its knowledge & functions enterprise, CNBC previously reported.
Twilio has been working with bankers at Qatalyst Partners to fend off these activists, CNBC reported in December.
“As we have beforehand mentioned with Twilio’s Board of Directors, we consider Founder Jeff Lawson’s departure from the corporate can be a step in the best path and are happy with the management change introduced in the present day,” mentioned Anson Funds portfolio supervisor Sagar Gupta.
Gupta helped construct Legion Partners’ stake in Twilio in 2023, folks beforehand instructed CNBC, and amassed a recent stake at Anson Funds when he joined the activist fund that fall.
“That mentioned, we consider that extra actions are wanted to maximise worth for shareholders. We look ahead to persevering with to have interaction with Twilio’s Board and administration workforce going ahead,” he added.
Shipchandler’s appointment comes after the corporate cut a further 5% of staff in layoffs that targeted on the corporate’s knowledge and functions enterprise. Still, an individual near Legion Partners instructed CNBC on the time that additional adjustments had been wanted.
Shipchandler served as Twilio’s chief monetary officer and as chief working officer earlier than taking up the corporate’s essential communications division in a company restructuring. He joined Twilio in 2018.
Legion Partners didn’t instantly reply to CNBC’s request for remark.