Mr Dorsey will be replaced by Twitter’s chief technology officer Parag Agrawal.
“I want you all to know that this was my decision and I own it. It was a tough one for me, of course. I love this service and company and all of you so much. I’m really sad...yet really happy”, Mr Dorsey wrote in an email, shared on Twitter.
“There aren’t many companies that get to this level. And there aren’t many founders that choose their company over their own ego. I know we’ll prove this was the right move.”
Mr Dorsey also said that a company being “founder-led” is “severely limiting and a single point of failure”. He also said that he has “worked hard to ensure this company can break away from its founding and founders”, and that his replacement will be “free of [his] influence or direction”.
The former chief executive will serve his time on Twitter’s board of directors to assist Parag and new board chair Bret Taylor with the transition.
In response, Mr Agrawal posted a screenshot of his own email thanking Mr Dorsey. “I joined this company 10 years ago when there were fewer than 1,000 employees. While it was a decade ago, those days feel like yesterday to me. I've walked in your shoes, I've seen the ups and downs, the challenges and obstacles, the wins and the mistakes. But then and now, above all else, I see Twitter's incredible impact, our continued progress, and the exciting opportunities ahead of us”, he wrote.
“The world is watching us right now, even more than they have before. Lots of people are going to have lots of different views and opinions about today's news. It is because they care about Twitter and our future, and it's a signal that the work we do here matters. Let's show the world Twitter's full potential!”
During his tenure, Mr Dorsey managed the tumultuous period during which president Donald Trump waged war against social media sites that he perceived as limiting conservative views. This was never conclusively shown, and in fact numerous reports have shown that social media sites in fact amplify right-wing voices more than left-wing ones.
Mr Dorsey implemented “newsworthiness” exceptions to Mr Trump and other world leaders - which he was often criticised for - that allowed the former president to continue tweeting content that would otherwise have violated Twitter’s terms of service.
It was not until the insurrection attempt on 6 January, after which Mr Trump had already lost the election to Joe Biden, that Twitter permanently banned him.
While it is unclear what Mr Dorsey will do after leaving Twitter, the billionaire has been a consistent advocate of cryptocurrency - which he has said will ‘unite the world’.
He is also the head of payment company Square, which bought a majority stake in music streaming service Tidal.
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