Linda Yaccarino Steps Down as CEO of Musk-Owned X Amid Mounting Turmoil

Linda Yaccarino, the CEO of Elon Musk-owned social media platform X, announced her resignation on Wednesday in a surprise move that adds to growing instability within Musk’s expansive business empire.

Yaccarino’s departure comes just months after X was acquired by Musk’s artificial intelligence startup xAI in a $33 billion all-stock deal and follows a series of controversies tied to both the platform and its newly integrated AI chatbot, Grok. The latest incident involved Grok posting content referencing Adolf Hitler, prompting public backlash and eventual deletion of the posts.

In a post shared on X, Yaccarino did not provide a specific reason for stepping down. “We started with the critical early work necessary to prioritize the safety of our users, especially children, and to restore advertiser confidence,” she wrote. Musk responded to her message by thanking her for her contributions.

Analysts suggest Yaccarino’s abrupt resignation may reflect growing tensions with Musk’s management style. “This may have come to a head when the embedded AI chat Grok started responding to posts in an increasingly offensive manner,” said Gil Luria of D.A. Davidson.

Yaccarino took the helm at X in 2023 with a mandate to revamp the company’s ad business and help Musk realize his vision of transforming X into an “everything app.” Under her leadership, X introduced new features, including a partnership with Visa for direct payments and a smart TV app. The company was also reportedly exploring its own branded credit or debit card.

Still, Yaccarino’s tenure was marred by persistent challenges, including a massive debt load, advertiser departures, and controversies surrounding Musk, such as his endorsement of antisemitic conspiracy theories and public spats with figures like former President Donald Trump.

Her exit follows recent high-profile resignations at Musk’s EV company Tesla, including senior executive Omead Afshar and North America HR Director Jenna Ferrua. Tesla shares dipped briefly following the news.

Before joining X, Yaccarino spent years modernizing the advertising division at NBCUniversal. Her departure leaves a leadership vacuum at a critical time for X, which continues to grapple with financial pressures and reputational damage as it navigates the evolving intersection of social media and AI.

Written By Rodney Mbua