‘X is close to breaking even’: CEO Linda Yaccarino as she reverses some of Musk’s older decisions

X CEO Linda Yaccarino has claimed that the platform is very close to breaking even. This comes as a surprise, given the financial challenges the company has faced since its acquisition by Elon Musk

Linda Yaccarino, the CEO of X, recently stated that the company previously known as Twitter is nearing the point of breaking even.

In her first interview since assuming her new position, Yaccarino, who has been with the company for eight weeks, mentioned that the operational run rate is currently quite close to achieving this balance.

Surprising revelations
This assertion comes as a surprise, given the financial challenges the company has faced since its acquisition by Elon Musk. With a decline in advertising revenue due to brands pausing ad expenditures on the platform, X has taken drastic measures to improve its cash flow.

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This includes instances like the implementation of rate limits for non-subscribers of Twitter Blue and the imposition of high fees for API access, which had an impact on the developer community.

Nevertheless, if Yaccarino’s statement can be taken as factual, it suggests that X’s financial situation is becoming more stable.

Notably, the company reduced its workforce from approximately 8,000 to 1,500 employees, although those who were laid off have yet to receive the promised severance pay. Outstanding financial obligations extend beyond this, as X is currently facing legal action for not paying rent for its office spaces in various countries.

Licensing has turned things around, says Yaccarino
Yaccarino emphasized the positive aspects of X’s business, highlighting the success of data licensing and API arrangements, along with the growth of the new subscription model. She also expressed her focus on enhancing the advertising division as part of her role.

She mentioned her regular engagement with brands, indicating that these interactions are beneficial for the company’s advertising sector. X is also incorporating AI-powered ad technology that allows brands to choose the level of content sensitivity for their advertisements. According to Musk, less conservative content placements will be offered at a reduced cost.

Compared to Musk, Yaccarino is viewed as a more reputable and less divisive figure, making her statements more credible. However, some of her claims about X appear to lack concrete evidence.

Yaccarino asserts that X’s current state of “health” is attributed to its success in upholding “freedom of speech, not freedom of reach.” She further contends that if a post is legal but offensive, it becomes exceedingly challenging for users to come across such content.

When questioned about public figures like Kanye West, known for his strong anti-Semitic views and his intention to rejoin Twitter, Yaccarino echoed Musk’s viewpoint by stating that the essence of freedom of expression is that one may not agree with everything that is said.

However, it’s reasonable to assume that a considerable portion beyond just 0.01 per cent of X’s user base would find it distressing to encounter West’s prejudiced rants.

Reinstating X’s Client Council
One of Musk’s decisions that Linda is reversing is reinstating X’s “client council”, an invitation-only group of marketing and advertising agency executives, in an attempt to rebuild brand relationships and win back advertisers.

Linda Yaccarino expressed her enthusiasm for advancing the company’s progress and officially reintroducing the client council in the upcoming fall. However, the specific members who will be part of this revived network have yet to be determined.

When asked if she was able to operate without interference from Musk she replied, saying, “I have autonomy.” “Think about it simply as almost like a relay race. Elon works on the technology, dreams of what’s next, passes the baton to me, and I bring it to market.”

Yaccarino, who previously held a prominent position at NBCUniversal’s advertising division, is leading a campaign to mend relationships with advertisers who had departed from the platform due to Elon Musk’s unconventional approach and unexpected and bizarre changes to content moderation.