Elon Musk’s social media platform X is experiencing significant internal changes under the stewardship of CEO Linda Yaccarino. According to a recent report by the Financial Times, Yaccarino is under substantial pressure to reduce costs and enhance revenue streams.
In response to these mounting pressures, Yaccarino has implemented several strategic changes within her executive team. Notably, she dismissed Joe Benarroch, her chief business operations and communications officer, who had been a key advisor. Insiders at X suggest that Benarroch’s departure was primarily due to his poor handling of a new adult content policy, which was not adequately communicated to clients before its public release.
This executive shake-up is occurring amidst escalating tensions between Musk and Yaccarino. Recruited by Musk from NBCUniversal, Yaccarino faces immense pressure to stabilize X’s financial standing. This has led to budget cuts across the US and UK sales teams and reduced expenditures in various areas, including travel.
Recently, an all-hands meeting at X, led by Yaccarino, was highlighted in the media. During the meeting, Yaccarino urged employees to support Musk’s new venture, x.AI, but provided limited information regarding X’s advertising business performance. According to The Verge, employees were eager for updates on the company’s performance reviews, which have been delayed without explanation, and expressed concerns over missing revenue targets for the quarter. Additionally, there have been recent layoffs within the company, contributing to staff anxiety.
Steve Davis, CEO of The Boring Company and a close associate of Musk, has been closely examining the finances at X’s San Francisco headquarters for several weeks, further heightening employee concerns.
In this climate of uncertainty, employees sought clarity on the company’s performance review process and business metrics during the recent all-hands meeting. However, according to The Verge, these topics were not thoroughly addressed.
As Yaccarino navigates these challenges, the future of X remains closely watched by both industry insiders and the broader public. Her ability to effectively manage costs, drive revenue growth, and maintain employee morale will be crucial in determining the platform’s trajectory amidst these turbulent times.
