After Granting Bonuses, Elon Musk Faces Mass Resignations from X Employees, Where Monetary Compensation Is Not the Sole Issue

Technology

Elon Musk’s Company X Faces Turmoil with Numerous Employee Resignations and Advertiser Backlash Amidst Controversial Comments.

Elon Musk is grappling with significant challenges in maintaining smooth operations at Company X, facing both internal and external turmoil. Advertisers are expressing dissatisfaction and withdrawing support following Musk’s controversial comments, particularly his recent remarks on an antisemitic conspiracy theory. This has led to a wave of resignations from senior and junior staff, raising uncertainties about the platform’s future.

According to a report by Claire Atkinson, Musk’s leadership at X (formerly Twitter) has been marked by a tumultuous period, with a recent surge in resignations within the sales department despite recent bonus distributions. The company is currently operating with a reduced workforce, experiencing financial losses in the advertising division. The concerns arise from the potential impact on revenue streams and the ability to attract new advertisers.

The upheaval within the company is attributed to Musk’s bold decisions, evoking both staunch support and fierce criticism. Advertisers, including major players like Apple and Disney, have voiced their discontent. Musk’s recent endorsement of an antisemitic conspiracy theory further fueled criticism and led to backlash, prompting an apology.

While Musk recognized the potential consequences of an advertising boycott on X’s survival, he vehemently defended the platform and shifted blame onto advertisers, stating that they would be responsible for the company’s demise if it were to collapse. In a confrontational stance, Musk characterized advertisers who withdrew support as blackmailers and asserted that their actions would be widely known.

Disney CEO Bob Iger expressed dissatisfaction with the partnership, emphasizing that Elon Musk’s public positions were not beneficial for Disney. Iger highlighted the negative association and downplayed the positive benefits of the collaboration, reflecting the ongoing challenges faced by Company X under Musk’s leadership.

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