Elon Musk's X hit by mass resignations, both senior & junior staff quitting roles
As per a report by Claire Atkinson, Elon Musk's role as the leader of X has been characterized by a turbulent period in the last few months.
Elon Musk seems to be having a tough time in maintaining a smooth workflow at X. The billionaire is currently dealing with criticism from advertisers due to his outspoken posts, coupled with recent remarks on an antisemitic conspiracy theory. Additionally, reports suggest internal issues within the company with numerous employees, both senior and junior staff, resigning from their roles.
As per a report by Claire Atkinson, Musk's role as the leader of X has been characterised by a turbulent period in the last few months. This includes a recent surge in resignations among both senior and junior sales staff. The report indicates that despite recent bonus distributions, a considerable number of employees, particularly those in the sales department, have opted to leave, raising concerns about the platform's future.
As outlined in Atkinson's report, X is presently functioning with a reduced workforce in its office, and the advertising division is undergoing financial setbacks. The initial large-scale layoffs occurred subsequent to the acquisition of Twitter last year, followed by widespread resignations in 2023. This undoubtedly raises concerns about the company's ability to sustain its revenue streams and attract new advertisers.
Notably, the unsettled upheaval is also a repercussion of Musk's daring decisions, which have elicited both staunch support and intense criticism. In fact, the company is already dealing with a substantial backlash from advertisers, including prominent names like Apple and Disney.
Elon Musk recently attracted widespread criticism when he endorsed a user's false claim suggesting that Jewish people were inciting hatred against white individuals. Musk, in his post, expressed agreement with the user who referenced the "Great Replacement" conspiracy theory, stating that they were speaking "the actual truth."
Following this post, Musk faced significant criticism and backlash from both antisemitic individuals and advertisers. He later issued an apology, describing his comment as akin to "handing a loaded gun" to his critics.
While Musk did apologise for his statement and acknowledged it as the most regrettable post among a history of numerous "foolish" messages, the repercussions from advertisers remained notable, with Musk urging advertisers to simply "F... off."
During his discussion with The New York Times at the DealBook Summit, Elon Musk characterised advertisers who suspended their advertising on X as 'blackmailers'. He said that if advertisers are uncomfortable with the platform's content, they should refrain from advertising there. Musk bluntly stated, "If somebody's going to try to blackmail me with advertising, blackmail me with money, go f**k yourself. Is that clear? I hope it is. Hey Bob (Iger), if you're in the audience, that's how I feel, don't advertise."
However, Musk did acknowledge the potential impact of an advertising boycott on X's survival. Nevertheless, he asserted that if the platform were to collapse, the responsibility would squarely rest on the advertisers who withdrew their support. Musk quoted, "The whole world will know that those advertisers killed the company."
Earlier at the summit, Disney CEO Bob Iger mentioned that Disney is not reaping positive advantages from its association with Elon Musk's X. "I have great respect for Elon and his achievements. We recognise that Elon is a larger-than-life figure in many ways, and his name is closely tied to the companies he established or owns. By publicly taking the position he did, we felt that the association was not necessarily beneficial for us," stated Iger.