X, Formerly Twitter, Close To Breaking Even, CEO Linda Yaccarino Confirms
Yaccarino, a former advertising executive, asserted that prominent brands are gradually returning to the X platform.
In a recent interview on CNBC, Linda Yaccarino, the CEO of social media platform X, disclosed that the company, formerly recognised as Twitter, is edging closer to achieving a balance between expenses and revenue. This positive development comes after a period of staff reductions initiated by owner Elon Musk. During her appearance, Yaccarino addressed concerns regarding the platform's safety and the rebranding decision orchestrated by Musk, who swapped its well-known moniker for the simpler 'X'.
Yaccarino, a former advertising executive, asserted that prominent brands are gradually returning to the X platform. Notable names such as Coca-Cola, Visa, and State Farm were cited among those reengaging with the platform.
One of the strategies Yaccarino attributed to X's rebound is its policy of permitting users to post legally acceptable content, irrespective of its nature, yet curbing its distribution and advertising benefits.
Yaccarino emphasised, "If it is lawful but it's awful, it's extraordinarily difficult for you to see it."
Nonetheless, she skillfully navigated around addressing the concern of how misinformation or baseless conspiracy theories, possibly even propagated by Musk himself, align with this approach.
Musk recently acknowledged the company's financial situation, stating that it was grappling with negative cash flow due to a significant decline in advertising revenue coupled with substantial debt.
Contrary to Musk's statements, Yaccarino conveyed a more optimistic outlook during the CNBC interview, asserting that X is progressing well and is nearing a point of financial equilibrium.
Additionally, she revealed the company's current focus on hiring new personnel. This hiring spree comes in the aftermath of Musk's drastic reduction in the Twitter workforce from 8,000 employees to around 1,500 after his $44 billion acquisition in October.
The sharp decline in content moderation due to Musk's management approach and layoffs significantly impacted the platform's advertising business. As a response, Musk has been steering the company toward generating revenue through user subscriptions and third-party applications paying for platform access.
Musk's vision involves transforming X into a comprehensive super-app inspired by China's WeChat, encompassing social media, messaging, and payment functionalities.
Yaccarino applauded the decision to rebrand as X, suggesting that retaining the Twitter brand would lead to incremental changes and being judged by historical standards. The new name signifies a shift toward innovation and novelty.
While acknowledging the playful exchanges between Musk and Mark Zuckerberg, the head of Meta, Yaccarino humorously brushed aside the idea of being involved in any hypothetical showdown between the two billionaire CEOs.
"I don't think I will be on the undercard for the cage match," she quipped, adding that she had observed Musk preparing for an event in San Francisco, hinting at his dedication to his endeavors.
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