Linda Yaccarino, the chief executive of the social media platform X, formerly known as Twitter, has initiated significant changes within her leadership team as she faces mounting pressure from owner Elon Musk. This pressure comes in the form of demands to boost sales and cut costs, following a tumultuous period for the platform. This comprehensive overview delves into the recent shake-ups, the context behind these changes, and their potential implications for X.
In a decisive move this month, Yaccarino dismissed Joe Benarroch, her right-hand man and head of business operations and communications. Benarroch, who joined X in June 2023 from Comcast’s NBCUniversal, was held responsible for mishandling the rollout of the platform’s new adult content policy by failing to inform clients before the changes were publicly announced. This misstep reportedly contributed to his dismissal, according to multiple sources familiar with the matter .
Nick Pickles, the head of global government affairs at X, will temporarily assume Benarroch’s responsibilities. His role has been expanded to include directing all global communications. Pickles, one of the few senior staff members who remained after Musk’s acquisition of the platform, is seen as a trusted and capable leader. He attended the Cannes Lions International Festival of Creativity alongside Yaccarino and Musk, marking his increased prominence within the company .
The reshuffle within Yaccarino’s team highlights the growing tensions between her and Musk. Yaccarino, who was poached from NBCUniversal by Musk, has been under intense pressure to stabilize X’s financial health. This pressure includes directives to raise revenues and cut expenses, such as reducing staff in the US and UK sales teams and minimizing travel expenditures .
To address these financial challenges, Musk brought in Steve Davis, the chief executive of his Boring Company, in April to review X’s finances and performance management. Davis, known for his cost-cutting efforts in late 2022 and early 2023 following Musk’s acquisition of X, has been tasked with assessing and potentially eliminating low-performing employees. This move has been interpreted as an indication of ongoing concerns about the platform’s financial stability. Davis, an aerospace expert, previously speculated to be a contender for the CEO position at X, is perceived as a potential threat to Yaccarino’s authority .
Since Musk’s takeover, X has faced significant financial and operational challenges. The platform’s advertising revenue, a critical source of income, has suffered due to changes in content moderation policies and Musk’s controversial leadership style. X was projected to earn approximately $2.5 billion in advertising revenue in 2023, a decline of about 45% compared to 2021, the last full year before Musk’s involvement .
In response to these challenges, Musk and Yaccarino have been actively trying to mend relationships with advertisers. At the Cannes Lions festival, Musk acknowledged advertisers’ concerns about content compatibility with their brands, addressing his previous confrontational stance towards those hesitant to use the platform. Despite these efforts, many advertising executives remain cautious, with some brands still reluctant to return to X fully .
Yaccarino has emphasized a focus on “performance management” within the company, signaling a strategic shift towards enhancing efficiency and accountability. This approach, coupled with Davis’s cost-cutting measures, aims to navigate X through its financial difficulties. The company’s leadership is keen to highlight new features like video and targeted marketing to attract advertisers back to the platform .