PayPal cofounder Max Levchin has resigned his post as chairman of Yelp’s board after a disappointing second-quarter earnings call on Tuesday.
“We thank Max for all his contributions to Yelp since its founding in 2004 when he provided the seed capital to start the company,” CEO Jeremy Stoppelman said in a statement. “Max saw Yelp grow from just an idea in my head to a company worth billions of dollars with Yelpers around the world. We have mutually agreed this is the right time for him to step down, given the demands on his time. I am grateful for his contributions to Yelp’s success and wish him all the best going forward.”
Levchin, one of Fast Company‘s most creative people in 2013, says his departure will allow him to shift his focus to “other demands on my time,” which include his role as CEO of finance startup Affirm. “I am extremely proud of what Yelp has accomplished over the last 11 years and believe I leave it well-positioned to take advantage of the large local advertising market,” he said in a statement.
Yelp stock prices dropped 28% on Wednesday following the company’s earnings announcement, which revealed it has struggled to attract and retain advertisers. During the call, Yelp said it would phase out its brand advertising unit in order to focus on the “customer experience” and native advertising products.
[via USA Today]