Air of changes in the house (formerly Twitter), accompanied by growing tension. Linda Yaccarino, managing director of the company, chosen by Elon Musk in May 2023, was forced to carry out cuts to his division to respond to the billionaire's increasingly pressing requests, aimed at increasing sales and reducing costs.
X: internal reorganization begins
One of the most significant changes was the dismissal of Joe Benarroch, Yaccarino's right-hand man and responsible for business operations and communications. Benarroch, who joined X in June 2023, came from Comcast's NBCUniversal, where he managed communications strategy for the advertising and partnerships division. Yaccarino criticized the manager for not having handled correctly the launch of the platform's new adult content, neglecting to inform customers of the changes before they became public knowledge.
To assume his duties will be Nick Pickles, head of global government affairs at X, will see his role within the company expanded.
In parallel, Elon Musk nominated Steve Davis, his close associate and CEO of the Boring Company, to oversee X's finances and improve company performance. Davis has already handled a series of significant layoffs at the company since Musk's takeover in 2022, and has been brought in again to implement further cuts.
X: Yaccarino under pressure and at risk of being torpedoed
Tensions between Musk and Yaccarino have emerged clearly in recent months. Musk, known for his direct and sometimes brutal approach to business management, has exercised a fpressure on Yaccarino to increase sales and reduce costs. Despite the cuts and reorganizations, Linda Yaccarino finds herself facing the difficult challenge of bringing X back to profitability. Yaccarino was chosen for her team strong ties with advertisers, an area in which he has demonstrated great expertise throughout his career. Despite his experience in advertising, however, Yaccarino's efforts so far did not lead to the expected results. In 2023, X's advertising revenue was estimated to be around $2,5 billion, half of the previous year. New monetization initiatives, such as the “blue check” paid membership program, have failed to close the revenue gap.
Elon Musk has acquired then-Twitter for $44 billion and is pushing executives to boost profits and further cut expenses. The platform has suffered a significant devaluation, with the value, according to some analysts, falling by 72% since the acquisition.
Constant pressure from Elon Musk and the influence of key figures such as Steve Davis further complicate the CEO's position. Davis is seen just as a potential successor to Yaccarino, although their skills are different. Furthermore, the current CEO's lack of technology experience could pose a challenge in managing a social platform that is constantly evolving and under constant public scrutiny.
