Linda Yaccarino, the chief executive of social media platform X, formerly known as Twitter, has reshuffled her leadership team amid financial challenges the social media platform is facing and increasing tension to cut costs and boost sales from Elon Musk, the Financial Times reported.
Leadership Shakeup within X
The Financial Times, citing three sources familiar with the situation, reported that Yaccarino reportedly terminated Joe Benarroch, her right-hand man and head of business operations and communications at social media platform X, earlier this month.
Joe Benarroch held a position at Comcast's NBCUniversal before joining X, formerly known as Twitter, in June 2023, where he managed communication strategy for the advertising and partnerships division, reporting to Linda Yaccarino, who served as the advertising chief at the time.
Benarroch was held responsible for the mishandled introduction of X's new adult content policy, which was not communicated to clients before its public release. According to the Financial Times, X's head of global government affairs, Nick Pickles, will assume Benarroch's duties, with an expanded scope of responsibilities overseeing all global communications.
Mounting Pressure to Enhance X's Financial Performance
The shakeup is attributed to increasing tensions between Musk and Yaccarino as she works to stabilize X's financial performance. The Financial Times reported that Yaccarino had perceived a potential threat to her authority when Musk appointed Steve Davis, a longtime ally and CEO of Musk's Boring Company, known for his previous experience leading cost-cutting initiatives at X. The reorganization also aligns with Musk's mounting pressure to enhance X's financial performance, prompting staff reductions and decreased expenditures across several departments.
Yaccarino's Steadfast Commitment to X's Mission
Musk and Yaccarino reportedly made efforts to mend relationships with advertisers during an interview at the Cannes Lions Creativity Festival last week. This addressed a previous incident when he publicly criticized potential advertisers last year who were reluctant to use his social media platform due to content moderation concerns and his leadership style.
The recent changes at X coincide with a series of challenges facing the platform. In June, reports surfaced that Yaccarino had kept her staff uninformed about delayed promotions and revenue targets, raising concerns about potential layoffs. In November, Yaccarino faced calls from advertising industry executives to resign following Musk's endorsement of an anti-semitic post on X. Despite these pressures, Yaccarino has remained steadfast, rejecting calls for her resignation and continuing to support X's mission, maintaining a positive outlook on X's future. In January, she announced the impending launch of Musk's highly anticipated "everything app," designed to unify diverse services on a single platform to benefit communities, creators, and businesses.
Meanwhile, Musk has been criticized for poaching talent from his other ventures, including Tesla Inc. and Neuralink, fueling controversy and contributing to the uncertainties at X, Benzinga reported.
