Linda Yaccarino Claims That Social Media Platform X is Close to Breaking Even
Linda Yaccarino, the CEO of X (formerly Twitter), reveals that its revenue is close to breaking even. What’s more, they even plan to hire some new staff.
With over 217 million users across the world, Twitter—now X—is recognized as one of the biggest social media platforms. And based on data, about 11.8 million of these users come from the Philippines. This encompasses about 10.1% of the country’s total population.
Upon Elon Musk’s acquisition of Twitter in April 2022, the platform saw several changes—including the appointment of Linda Yaccarino as its new CEO and the platform’s renaming to X. Given these recent changes, some people have their eyes on the performance of the social media platform to see whether or not the rebranding will work effectively.
According to recent news, Yaccarino announced that they are currently close to breaking even and that they are actively hiring people to staff up their operations. Aside from that, she also addressed security platforms and other concerns about the brand.
Measures Taken to Attain Brand Recovery
Yaccarino shared the news that several brands are returning to their platform X, including the likes of Coca-Cola, Visa, and State Farm. This responds to the previous reports that the company was experiencing negative cash flow due to significant drops in ad revenue and growing debt. Based on Yaccarino’s latest update, she contradicts these claims, as she emphasizes that they are “maintaining a good pace” and getting close to breaking even financially.
Following the acquisition, it was also reported that Musk did a mass firing, which cut off the company population from 8,000 to 1,500 employees. The mass layoffs caused a collapse in the platform’s ad business. However, the company is now exerting additional efforts on hiring new employees again.
Aside from that, the platform has also been implementing subscription plans and has been partnering with paid third-party apps to bring in more revenue.
Addressing Other Brand Issues
Yaccarino also attributed X’s brand engagement status to its policy of allowing users to post anything legal but preventing it from being monetized through ads. This approach ensures that potentially harmful content will be hidden. “If it is lawful but it’s awful, it’s extraordinarily difficult for you to see it,” she said.
The CEO also made comments about how Musk wanted X to work like China’s WeChat by allowing it to function as a social media platform, messaging, and payment app. About the motion of renaming the platform to X, she stated, “If you stay Twitter, or you stay whatever your previous brand is, change tends to be only incremental and you get graded by a legacy report card.”
In her interview, she also told how Musk focuses on product design while she runs the rest of the company. “Elon works on the technology, dreams of what’s next, then passes the baton to me. I bring it to market.”
Taking the situation of X into consideration, bad brand decisions—like what Elon Musk did mass firing people—can largely impact the earnings of the brand. With that, companies should always be cautious with what changes they implement as their decisions can make or break their company, regardless of whether it’s new or if it’s been established for years.