X CEO steps down after two years
Linda Yaccarino, who was hired two years ago by Elon Musk as chief executive officer of X, is stepping down less than three months after the social-media platform was absorbed by Musk’s artificial intelligence startup, xAI.
“After two incredible years, I’ve decided to step down as CEO of X,” Yaccarino said in a post on X Wednesday. “I’ll be cheering you all on as you continue to change the world.”
The former NBCUniversal executive was hired by Musk in May 2023 after he’d already fired or lost about 75% of employees at the company previously called Twitter.
Over the course of her two-year tenure, Yaccarino was charged with reversing an advertiser exodus from the platform, triggered in part by Musk’s own erratic content moderation decisions and posts.
Advertisers were concerned that their products would be listed next to hate speech or violent content.
It was a difficult task. X revenue fell by close to 50% and missed internal targets in 2023, and several major advertisers departed the platform or paused spending after Musk endorsed an antisemitic post in late 2023.
He told marketers who were boycotting the platform to “Go f—- yourself” at a conference after the incident.
At the time, Yaccarino told staff that the company’s “free speech” mission would continue with or without advertiser support.
“Our principles do not have a price tag, nor will they be compromised — ever,” Yaccarino wrote.
Revenue has since improved from those lows, and advertising sales were projected to increase 16.5% this year, according to Emarketer.
Yaccarino, who spent more than 11 years as a top advertising executive at NBCUniversal, is known for her strong relationships in the ad world.
Still, that growth has come with a bit of an asterisk, given news reports that X has threatened to sue advertisers who don’t spend on the platform.
Bloomberg News also reported that advertisers were returning, in part, to curry favour with Musk, who had a role in US President Donald Trump’s administration earlier this year. The Federal Trade Commission took interest in the advertiser exodus.
Yaccarino, meanwhile, has repeatedly defended her boss and the platform from critics who have pointed to a rise in violent content, antisemitism and misinformation on X.
“Yaccarino lasted in the role longer than many expected,” said Jasmine Enberg, a vice president at research firm Emarketer.
“Faced with a mercurial owner who never fully stepped away from the helm and continued to use the platform as his personal megaphone, Yaccarino had to try to run the business while also regularly putting out fires.”
Musk’s announcement in March that his xAI startup had acquired X at a valuation of $33 billion (R587 billion) brought into question Yaccarino’s future at the company.
The deal was widely seen as offering a resolution to X’s backers following months of uncertainty over the state of their investment.
Yaccarino remained the CEO of X, but not of the combined property, called xAI Holdings.
In her X post Wednesday, Yaccarino described her job as “the opportunity of a lifetime” and expressed her gratitude to Musk for “entrusting me with the responsibility of protecting free speech, turning the company around, and transforming X into the Everything App.”
During her time, Yaccarino said, X prioritised the safety of its users and restoring advertiser confidence.
However, the platform has continued to draw criticism and attract controversy.
This week, Musk’s xAI said it was working to remove inappropriate posts on X after its artificial intelligence chatbot, Grok, shared multiple antisemitic comments that triggered widespread condemnation.
Musk is expected to announce a new version of Grok late Wednesday during a livestreamed event.
Yaccarino’s decision to resign was in the works well before the latest Grok incident, according to a person familiar with her plans.
Also this week, a Turkey government minister on Wednesday blasted profane posts generated by Grok on X, calling them unacceptable and warning they could lead to a ban on the platform in the country.
And Poland called on the European Union to investigate xAI over abusive content after Grok made lewd comments about the country’s politicians.
In addition, the European Commission is considering the first fine under the EU’s online content rulebook for alleged infractions by X before its summer recess in August.
After xAI took over X, Bloomberg reported that the AI startup was burning through $1 billion (R17.7 billion) a month, with the cost of building advanced AI models racing ahead of limited revenues.
To cover the gap, the company is trying to raise $9.3 billion (R166 billion) in debt and equity, Bloomberg reported last month, based on information from people briefed on the deal terms.
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