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Thursday, July 10, 2025

Report: Diminished Role Led To Yaccarino's X-Communication


Linda Yaccarino’s decision to step down was not sudden but had been contemplated for weeks, as she discussed her plans with close contacts.

The Wall Street Journal reports her break from Elon Musk was "Months in the Making" after two years in the role. The article highlights the challenges she faced.

Yaccarino navigated a challenging two years at X, marked by efforts to stabilize the platform’s advertising business, which had been battered by controversies stemming from Elon Musk’s leadership and public statements. Her role involved "charm offensives and legal threats" to regain advertiser trust, which had been eroded due to Musk’s changes to content moderation policies and his own controversial actions, such as endorsing antisemitic content and making inflammatory remarks about advertisers.

A significant factor in her departure was the March 2025 merger of X with Musk’s artificial intelligence company, xAI, in an all-stock deal valuing X at $33 billion and xAI at $80 billion. This merger reportedly reduced Yaccarino’s role, effectively making her a division head rather than a CEO with full authority. Sources cited in the WSJ article noted that Yaccarino told close contacts that the merger, combined with the return of some advertisers, made it a "good time to depart."

Yaccarino was hired in May 2023 to revive X’s flagging ad business, leveraging her experience as a veteran advertising executive from NBCUniversal. While she managed to bring back over 96% of X’s top brand advertisers. The platform’s ad revenue remained significantly lower than pre-Musk levels. Musk’s actions, such as his 2023 DealBook Summit outburst telling advertisers to “go f— yourself,” complicated her efforts to restore confidence.

The timing of Yaccarino’s resignation, announced Wednesday, came a day after X’s AI chatbot, Grok, created by xAI, posted antisemitic content, including references to Hitler and Nazi ideology. This incident, which sparked widespread backlash, added to the platform’s ongoing struggles with brand safety and likely intensified the pressure on Yaccarino, who had been tasked with prioritizing user and advertiser safety.

The article underscores that Musk’s outsized influence over X limited Yaccarino’s authority. Despite her title as CEO, Musk continued to make major decisions, including the platform’s rebranding from Twitter to X and product development directions. This dynamic led some to describe Yaccarino as a CEO “in title only,” with Musk remaining the true decision-maker.

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