X CEO Linda Yaccarino reshuffles leadership amid tensions with Musk
What's the story
Linda Yaccarino, CEO of X, has made changes to her leadership team in response to pressure from Elon Musk. The reshuffle comes as Musk urges the firm to boost revenue and cut costs. Joe Benarroch, head of business operations and communications, was dismissed due to his mishandling of the platform's new adult content policy. Nick Pickles will assume Benarroch's responsibilities. This move is seen as a boost for Pickles who previously ran for office as an MP in the UK.
Downsizing
Musk's pressure on Yaccarino leads to cost-cutting measures
The pressure on Yaccarino has resulted in staff cuts from US and UK sales teams, along with lowered spending on travel and other expenses. Simultaneously, Steve Davis, CEO of Musk's Boring Company, was brought in by Musk to review X's finances and performance management. Davis's involvement is seen as a sign of ongoing concerns about the platform's financial stability.
Woes
X struggles to win back advertisers
In an effort to regain the trust of ad agencies and brand leaders, both Musk and Yaccarino attended the Cannes advertising festival. This move followed firms like Disney, IBM, and Apple pausing spending on the platform due to concerns over content moderation. X executives say that over 60% of brands that had paused advertising have resumed in some capacity. However, according to a Financial Times report, advertising executives still do not consider X among their preferred channels for advertisements.
Reason
Benarroch did not inform clients of policy change
Benarroch's dismissal occurred after he failed to inform clients before the changes in the platform's adult content policy became public, as per two X employees. His responsibilities will now be temporarily assumed by Pickles, head of global government affairs at X.