Jack Dorsey, the co-founder, and CEO of Twitter is stepping down as the company's CEO. Twitter's CTO, Parag Agrawal, will take over as the company's new CEO, effective immediately.

The company's board of directors unanimously approved Agrawal as Dorsey's replacement, which was announced on Twitter this Monday. Dorsey will serve on Twitter's board of directors until the end of his current term in 2022. Dorsey warned employees in an email (with the subject line "Fly") that when his tenure finishes, he will depart the firm. Bret Taylor, a current board member, will take over as chairman of the corporation.

In a Monday email to employees, Dorsey added: “He’s been my choice for some time given how deeply he understands the company and its needs. Parag has been behind every critical decision that helped turn this company around.”

“I’ve walked in your shoes. I’ve seen the ups and downs, the challenges and the 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,” Agrawal responded in an email to his team immediately after Dorsey's statement.

This is not the first time Dorsey has stepped down from his position, wherein he shifted to a chairman position in 2008 from being the company’s first CEO. Following the departure of then-CEO Dick Costolo in 2015, he returned to the job of being Twitter’s CEO.

In just a few minutes after the announcement of Dorsey stepping down which was reported by CNBC’s David Faber, Twitter’s stock rose by more than 10 percent.