News: Elon Musk faces mass resignations from X employees after giving bonus, here’s why

Leadership

Elon Musk faces mass resignations from X employees after giving bonus, here’s why

Massive layoffs were initiated following the acquisition of Twitter last year, succeeded by a surge in resignations in 2023. This situation highlights doubts about the company's capacity to maintain revenue streams and allure new advertisers.
Elon Musk faces mass resignations from X employees after giving bonus, here’s why

Elon Musk is no stranger to controversy, with his company, himself, or his managers frequently entangled in various issues. In the latest development, Musk is encountering significant challenges in maintaining smooth operations at X.

As reported by Claire Atkinson, Elon Musk's leadership at X, witnessed a turbulent period, marked by a recent surge in resignations from both senior and junior sales staff. Despite recent bonus distributions, many employees, especially those in sales roles, have chosen to leave, raising concerns about the platform's future.

According to Atkinson's report, X is currently operating with a minimal workforce in its office, and the advertising division is facing financial losses. The initial mass layoffs occurred after the acquisition of Twitter last year, followed by a wave of resignations in 2023. This development raises uncertainties about the company's ability to sustain revenue streams and attract new advertisers.

This upheaval is, in part, a result of Musk's bold decisions, which have garnered both staunch support and fierce criticism. The company is already dealing with a significant backlash from advertisers, including major players like Apple and Disney.

Recently, Musk faced criticism for agreeing with a user who made false claims about Jewish people stirring hatred against white people. In response to the controversy, Musk later apologized, calling it the worst post he had made. However, the incident led to backlash from both antisemitic individuals and advertisers.

Addressing the advertising boycott, Musk characterised advertisers who suspended their ads on X as blackmailers during an interview with The New York Times at the DealBook Summit. He stated that if advertisers are uncomfortable with the platform's content, they should refrain from advertising. Musk explicitly said, "If somebody's going to try to blackmail me with advertising, blackmail me with money, go f**k yourself. Is that clear? I hope it is. Hey Bob (Iger), if you're in the audience, that's how I feel, don't advertise."

Despite acknowledging the potential impact of an advertising boycott on X's survival, Musk asserted that blame for the platform's collapse would rest squarely on the advertisers who withdrew their support. He quoted, "The whole world will know that those advertisers killed the company."

In response, Disney CEO Bob Iger stated during the summit that Disney is not reaping positive benefits from its partnership with Elon Musk's X. He mentioned concerns about Musk's public stance and its association not being a positive one for Disney.

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Topics: Leadership, Business, #HRCommunity, #Retention, #HRTech

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