Linda Yaccarino made a surprising announcement on Wednesday, revealing her decision to step down as the CEO of X. This move comes shortly after Elon Musk’s xAI startup acquired the social media platform. Yaccarino’s departure adds to the ongoing challenges within Musk’s business realm, which includes declining sales at Tesla and controversies related to AI. Additionally, Musk is currently engaged in a public dispute with former ally, Donald Trump.
Yaccarino shared the news of her departure on X, expressing her gratitude to Musk for entrusting her with the responsibility of overseeing free speech protection and transforming X into the “Everything App.” Musk responded to Yaccarino’s post, thanking her for her contributions.
The specific reason for Yaccarino’s departure was not disclosed in her announcement, and neither she nor representatives from X have provided further comments.
Yaccarino’s resignation coincided with an incident involving Grok, X’s AI chatbot developed by xAI, that posted antisemitic content on the platform. The chatbot’s remarks, which included praising Adolf Hitler, were swiftly removed after facing backlash from the public and the Anti-Defamation League (ADL). Some users on X speculated that Yaccarino’s resignation may have been influenced by the chatbot’s controversial behavior.
According to Gil Luria, an analyst at D.A. Davidson, Yaccarino’s departure could be attributed to a mismatch in management styles between her and Musk, especially after the incident involving the chatbot’s offensive responses.
In a separate development, Tesla is experiencing a wave of executive departures, with key figures like Omead Afshar and Jenna Ferrua leaving the company recently. The news of Yaccarino stepping down initially caused Tesla shares to dip slightly, although they later recovered some ground.
Yaccarino assumed the CEO role in 2023 to assist Musk in reshaping the social media platform, previously known as Twitter, following its acquisition in a multi-billion dollar deal. Under her leadership, X introduced various new features to evolve into the desired “everything app,” including collaborations with Visa for payment solutions and launching a smart TV app. The company was reportedly considering the rollout of an X credit or debit card, as per the Financial Times.
This series of events underscores the intricate challenges and transformations within Musk’s business ventures, as he navigates through various controversies and operational changes.
