Over a year ago, Linda Yaccarino took over as CEO of X (formerly Twitter) and has frequently made headlines since. Initially, Yaccarino expressed enthusiasm for her new role, calling Musk an inspirational figure. However, a recent Financial Times report suggests Yaccarino is now under pressure to cut costs and boost revenue.
According to the report, Yaccarino has made significant changes within her executive team due to this pressure from Musk. This includes the dismissal of Joe Benarroch, head of business operations and communications, who was held responsible for mishandling the rollout of a new adult content policy. Benarroch’s failure to inform clients of these changes prior to their public release was a critical factor in his departure. Benarroch had joined X in June 2023 from Comcast’s NBCUniversal, where he reported directly to Yaccarino.
This leadership shake-up occurs amid growing tension between Musk and Yaccarino. Recruited from NBCUniversal by Musk, Yaccarino is under intense pressure to stabilize X’s financial health. Sources indicate that she is particularly anxious about meeting Musk’s demands to increase revenue and reduce expenses. This has included cuts to the US and UK sales teams and reductions in travel expenditures.
Recently, details from an all-hands meeting at X emerged, revealing that Yaccarino urged employees to promote Musk’s new venture, x.AI, but did not extensively discuss X’s advertising business performance. According to The Verge, employees were concerned about the company’s performance reviews, with the promotions process delayed without explanation. Insiders noted that X’s sales team was not expected to meet its revenue targets for the quarter, and a handful of employees had been laid off.
Additionally, Steve Davis, CEO of The Boring Company and a close associate of Musk, has been scrutinizing the finances at X’s San Francisco headquarters, causing further anxiety among staff.
During the all-hands meeting, employees sought clarity on the company’s performance review process and business performance. However, according to The Verge, these points were not adequately addressed. The New York Times reported that while Yaccarino mentioned X’s advertising business, she did not provide updated sales figures. She noted that 65% of advertisers had returned to the platform, but sources indicated that this did not necessarily translate into increased revenue.
