X to Start Hiring Japan Engineers in 2024, Aims to Foster Strategic Partnership with Its Second-largest Market

By Moon Harper

Dec 08, 2023 12:16 AM EST

Social media platform X plans to hire engineers in Japan and form a development team for app creation, focusing on functions and advertising products for the Japanese market. The team aims to design a cost-effective advertising system to assess demand from small and mid-size businesses in Japan.

X's Future Plan

Social media platform X, led by CEO Linda Yaccarino, will begin hiring engineers in Japan to establish an app development team focused on creating features and advertising products for the Japanese market in 2024, as reported by Nikkei. The group aims to devise a low-cost advertising mechanism to assess interest from small and mid-size businesses in Japan. In the wake of challenges, including a decline in advertiser retention since Elon Musk's acquisition in October 2022, X has faced recent departures from major brands like Apple, Walt Disney, and Warner Bros Discovery due to concerns about antisemitic content. Musk has issued a full apology and explanation, with Yaccarino stating that the company will strengthen its Japanese team to address inappropriate content.

An App Development Team in Japan

The first team of its kind outside the U.S. will create new app features and ads tailored to the Japanese market. X aims to generate interest from small and mid-size Japanese businesses, hoping this will improve its overall business performance, as mentioned by Yaccarino.

Yaccarino took on her role in June after succeeding Elon Musk, who assumed control of Twitter in 2022. Boosting X with 500 million global users and Japan as X's second-largest market after the U.S. comprises 10% of engaged users, Yaccarino mentioned that the new team will create products and directly communicate with advertisers within the country.

An "Everything App"

X advocates for an "everything app" that provides diverse services through smartphones. This includes short text posting, AI-based searching, video calls, uploading, and payments. Although the company has primarily focused on developing the program in the U.S., it plans to hire engineers in Japan to better cater to the needs of the Japanese population in its new services.

Anti-Semitic Issue And Pledge To Diversify Revenue

Major American companies like Walt Disney Co., IBM, and Apple have withdrawn their ads from X due to a tweet by Musk that could be interpreted as antisemitic. Consequently, ad revenue, which used to make up 90% of Twitter's total income before Musk's acquisition, has significantly declined.

Yaccarino mentioned that Elon provided a complete apology and explanation regarding the issue. She emphasized that antisemitism or hate has no place on the platform, and X will strengthen its team in Japan to address inappropriate content. She also invited advertisers who left the platform to consider returning. Although X hasn't fully attracted ads from small and mid-size businesses, Yaccarino believes they are a crucial segment for diversifying revenue streams and mentioned that such ads are thriving on the platform.

Fostering Stronger Partnerships

The new Japanese development team will create a system for affordable ads to assess interest from small and mid-size companies. Additionally, the team will focus on improving services for the existing audience and customers.

Yaccarino described her relationship with Elon as a strong partnership, emphasizing his support since she joined X. She clarified that she manages the company. At the same time, Elon focuses on product innovation, exchanging knowledge and expertise.