X CEO Linda Yaccarino has made significant changes to her leadership team as the company faces financial challenges and increasing pressure from Elon Musk to reduce costs and boost sales.

What Happened: Yaccarino, who took over as CEO of X a year ago, has dismissed her right-hand man and head of business operations and communications, Joe Benarroch, reported Financial Times, citing people familiar with the matter.

This move comes amid rising tensions between Musk and Yaccarino due to the social media platform’s financial struggles.

Benarroch was held accountable for the botched rollout of X’s new adult content policy, which was not communicated to clients before it became public. His responsibilities have been temporarily handed to Nick Pickles, the head of global government affairs.

Yaccarino’s reshuffling of her team coincides with Musk’s increasing pressure to improve X’s financial performance. This pressure has resulted in staff cuts and reduced spending in various areas.

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Musk, who took over X in 2023 and rebranded it from Twitter, brought in Steve Davis, CEO of The Boring Company, to review X’s finances and performance management. Davis, seen as a potential threat to Yaccarino’s authority, has previously led a cost-cutting effort at X.

In Cannes, Musk and Yaccarino have reportedly been trying to win back advertisers after several major brands paused spending due to concerns over content moderation and Musk’s leadership style.

X Corp. did not immediately respond to Benzinga's request for comment.

Why It Matters: The latest shake-up at X comes amid a series of challenges for the platform. In June, Yaccarino was reported to have left her staff in the dark over delayed promotions and revenue targets. This led to concerns about potential layoffs.

Adding to the turmoil, in November, Yaccarino was reportedly urged by several advertising industry executives to resign following Musk’s endorsement of an anti-semitic post on X. Despite these pressures, Yaccarino has stood firm, rejecting calls for her resignation and continuing to support X's mission.

Despite these hurdles, Yaccarino remains optimistic about the future of X. In January, she announced that the highly anticipated version of Musk’s envisioned "everything app" is nearing its launch. It aims to consolidate diverse services into one platform, benefiting communities, creators, and businesses.

Moreover, Musk has been accused of poaching talent from his other ventures, including Tesla Inc. and Neuralink. This has sparked controversy and added to the uncertainty within X.

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This story was generated using Benzinga Neuro and edited by Kaustubh Bagalkote