The Troubling State of X: Layoffs, Revenue Targets, and Employee Concerns

The internal all-hands meeting led by X CEO Linda Yaccarino was a moment of concern for many employees. Sources within the company revealed that the promotions process had been delayed without explanation, and the sales team was not expected to meet its revenue targets for the quarter. This news comes amidst ongoing struggles for the company under Elon Musk’s ownership, with employees fearing the possibility of more layoffs.

One of Musk’s key lieutenants, Steve Davis, CEO of The Boring Company, has been a visible presence at X’s headquarters in San Francisco, reviewing the company’s finances. Referred to as “the grim reaper who only shows up for bad things” by one employee, Davis’s presence only added to the anxiety and uncertainty felt by the staff.

Recent days have seen a handful of employees laid off, with the sudden departure of Yaccarino’s right-hand man, Joe Benarroch, raising further concerns. The all-hands meeting with Yaccarino was eagerly anticipated by the remaining 1,500 staffers, who hoped for clarity and reassurance in the face of so much uncertainty.

During the meeting, Yaccarino highlighted X’s focus on live events such as the Super Bowl and March Madness, as well as the promotion of Musk’s x.AI chatbot Grok to advertisers. She also mentioned the company’s emphasis on video driving advertising, though specifics were lacking. Despite efforts to drum up excitement, questions from employees largely centered on HR issues, promotions, raises, and equity, with many left unanswered.

Notably absent from the meeting was Elon Musk, despite being in San Francisco at the time. Instead, other directors including Monique Pintarelli, Nick Pickles, Kylie McRoberts, and Haofei Wang joined Yaccarino. Walter Gilbert, X’s head of HR, announced plans for a more comprehensive promotion process, including regular check-ins throughout the year, though specifics on addressing employee concerns were limited.

The state of X remains in flux, with layoffs, revenue challenges, and employee apprehensions casting a shadow over the company’s future. As X navigates these turbulent waters under Musk’s leadership, the need for transparency, communication, and concrete action to address employee concerns has never been more pressing. Only time will tell if X can weather the storm and emerge stronger on the other side.