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Big changes in the X house. Linda Yaccarinothe platform’s CEO, was forced to make cuts to her division in response to growing pressure from its president and owner Elon Musk to increase sales and reduce costs.
The reorganization of the team
In June, Yaccarino fired Joe Benarroch, his right-hand man and responsible for business operations and communications. Benarroch had joined X in June 2023, having worked at Comcast’s NBCUniversal, where he managed the communications strategy for the advertising and partnerships division, reporting directly to Yaccarino. Now, his responsibilities will be taken over by Nick Pickleshead of global government affairs at X, who will see his role expanded to also include leadership of all global communications.
Growing pressures and tensions
The reorganization derives from growing tensions between Musk and Yaccarinowith the latter struggling to stabilize X’s financial health. Steve DavisMusk’s longtime ally and CEO Boring Company, was appointed by the billionaire to review X’s finances and performance management starting in April. Davis is seen by many as a key figure who could potentially undermine Yaccarino’s authority within the company.
X’s financial challenges
Elon Musk, who acquired X for $42 billion, is pushing executives to boost profits and further cut expenses. The company suffered a significant devaluation, with the value, according to some observers, having fallen by 72% since the acquisition. Yaccarino was chosen primarily for her experience in advertising, but so far her efforts have not led to the expected results. In 2023, X’s advertising revenue was estimated to be around $2.5 billion, half of the previous year. New monetization initiatives, such as the paid membership program for “blue check”have failed to close the gap.
The future of X and the role of Yaccarino
Despite the cuts and reorganisations, Yaccarino finds himself having to face the difficult challenge of bringing X back to profitability. Pressure from Musk and the presence of influential figures such as Steve Davis further complicate his position. Davis, who has already helped Musk reduce expenses in the immediate aftermath of the acquisition, he is seen as a possible successor to Yaccarinoeven if we are talking about two professionally distant figures.
