As the CEO of X, formerly known as Twitter, Linda Yaccarino is reportedly finding it increasingly difficult to work under the leadership of Elon Musk.
What Happened: X has been facing a decline in advertising revenue since Musk took over in 2022. Major advertisers, including McDonald’s and YouTube, have cut their spending on X by 55% during the February Super Bowl compared to the previous year, leading to tensions between Musk and Yaccarino, a Business Insider report revealed on Sunday.
Musk has been pushing Yaccarino to boost revenues and reduce costs, which has reportedly made her feel increasingly anxious. Yaccarino, who assumed the role of CEO in June last year, has been working hard to stabilize X’s financial health amid these challenges.
Musk’s negative comments towards some advertisers last year have added to Yaccarino’s challenges. Companies such as Airbnb, Coca-Cola, and Microsoft have stopped or are planning to stop advertising on X, potentially causing a loss of up to $75 million in revenue.
Musk has been trying to persuade advertisers to return to the platform despite these hurdles. In June, he met with ad buyers at the Cannes Lions Festival and was interviewed by Mark Read, CEO of advertising giant WPP.
With the financial pressure mounting, Musk and Yaccarino have been making changes to the company’s leadership. In April, Musk brought in ally Steve Davis to review the company’s finances and employee performance. Earlier this month, Yaccarino’s right-hand man, Joe Benarroch, announced his departure.
X has yet to respond to the queries sent by Benzinga.
Why It Matters: In a deposition last month, Musk admitted that his posts on X might have had a negative financial impact on the company. This confession, coupled with the company’s financial struggles, has increased the pressure on Yaccarino.
Furthermore, Yaccarino has made significant changes to her leadership team, including dismissing her right-hand man and head of business operations and communications, Joe Benarroch. These changes reflect the increasing pressure from Musk to reduce costs and boost sales.
Copyright by World Economic Forum / Sikarin Fon Thanachaiary
This story was generated using Benzinga Neuro and edited by Pooja Rajkumari
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
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