Twilio shares rose more than 7% on the news.
“The time has come for me to pass the reins of this exceptional company to a new CEO to lead Twilio through its next chapter,” Lawson said in a blog post announcing the change.
Josima Shepchandler, a longtime Twilio executive, will take over the top role starting Monday. Shipchandler will also hold a seat on the board of directors.
Lawson will also step down from Twilio’s board of directors, where he served as chairman. Jeff Epstein, current board member and partner at Bessemer Venture Partners, will take the lead seat.
“I am honored to take on the role of CEO,” Shipchandler said in a statement. He also suggested that the company take a closer look at “underperforming” companies, in line with what activists have been agitating for.
However, the move is unlikely to alienate activists at Anson Funds and Legion Partners. Both are pressuring the company to sell itself or completely divest from its data and apps businesses, CNBC previously reported.
Twilio is working with bankers at Qatalyst Partners to fend off these activists, CNBC reported in December.
“As we have previously discussed with Twilio’s board of directors, we believe founder Jeff Lawson’s departure from the company will be a step in the right direction, and we are pleased with the leadership change announced today,” said Sagar Gupta, portfolio manager at Anson Funds.
Gupta helped build out Legion Partners’ stake in Twilio in 2023, people previously told CNBC, and amassed a new stake in Anson Funds when he joined the activist fund this fall.
“However, we believe further action is needed to maximize shareholder value. We look forward to continuing to work with Twilio’s board and management team moving forward,” he added.
Shipchandler’s appointment comes after the company cut another 5% of staff in layoffs focused on the company’s data and applications business. However, a person close to Legion Partners told CNBC at the time that more changes were needed.
Shipchandler served as Twilio’s CFO and chief operating officer before taking over the company’s important communications division in its corporate restructuring. He joined Twilio in 2018.
Legion Partners did not immediately respond to CNBC’s request for comment.