Square CFO Sarah Friar to step down, stock falls at least 8% 

  • Square's chief financial officer Sarah Friar will step down, and take a job as the CEO of social network Nextdoor, the company announced Wednesday.
  • "I'm saddened by the news," Square CEO Jack Dorsey said in note to employees, which he posted on Twitter.
  • Shares of the fintech company dropped as much as 8 percent in after-hours trading.
Sarah Friar, CFO, Square
Scott Mlyn | CNBC
Sarah Friar, CFO, Square

Payment company Square's chief financial officer Sarah Friar will step down and take a job as CEO of Nextdoor, the company announced Wednesday.

Shares of the fintech company, run by Twitter CEO Jack Dorsey, dropped as much as 8 percent in after-hour trading.

"I'm saddened by the news," Square CEO Jack Dorsey said in note to employees. "I was unrealistically expecting to be working with Sarah well into our late 90s (swapping the standup tables for rocking chairs). Unrealistic because I knew of Sarah's lifelong ambition to run her own company."

The current CEO of Nextdoor, a social network for local neighborhoods founded in 2010, announced plans to step down from his role after almost eight years Wednesday.

San Francisco-based Square is well-known for its credit card processor, payment hardware and popular Cash app. The company has also expanded into small business lending with Square Capital, which launched in 2014. Friar recently hinted at more moves into banks' turf, and said that "anything you do today with a bank account, you should look to the Cash App to begin to emulate more and more of."

Friar helped take Square public in 2015, and build "a growing ecosystem of businesses that will scale into the future," Dorsey said in a press release.

"Sarah leaves us having established a culture of entrepreneurship and discipline across the entire company. She has been an amazing leader, partner, and friend, and we are grateful for all she's done for Square," the CEO said.

Square's stock is up more than 130 percent year over year, and have surged more than 105 percent this year alone.