December 10, 2022

Elon Musk's Twitter faces a massive exodus of advertisers and CEOs

Elon Musk’s Twitter faces a massive exodus of advertisers and CEOs

SAN FRANCISCO – Twitter faces a mass exodus of fickle CEOs and advertisers Elon Musk and his advisors Take control of a social media companyPrepare to lay off employees and make changes to the product.

At least five of Twitter’s top executives — including chief marketing officer, chief customer officer, chief people and diversity, and chief product — have left the company in recent days, according to seven people familiar with the topic and audience. formulations. Two announced their departures via Twitter on Tuesday; They did not mention the reason for their resignation. People said more CEOs might be leaving.

Meanwhile, advertisers – who provide about 90 per cent of Twitter’s revenue – are increasingly wrestling with Mr. Musk’s ownership of the platform. The billionaire, who is meeting with advertising executives in New York this week, has alarmed some advertisers as he said he will relax Twitter’s content rules, which could lead to an increase in misinformation and other toxic content.

IPG, one of the world’s largest advertising companies, on Monday issued a recommendation through its media agencies for clients to pause their Twitter spending due to moderation concerns, three people familiar with the contact said. The Global Alliance for Responsible Media, an alliance of platforms, advertisers and industry groups that fight harmful content on social media, also said this week that it was monitoring how Twitter plans to handle content moderation.

Twitter has been a mess as it adjusts to the new reality under Mr. Musk Close the $44 billion acquisition deal company last week. Mr. Musk promptly fired Twitter’s CEO, CFO and others before moving quickly to install trusted confidants and engineers from his other companies into the social media company.

Since then, Mr. Musk and his advisors have worked on product changes and Big cuts in Twitter ratings and profile. Managers at Twitter, which has about 7,500 employees, said they are ending lists of high and low performing workers, likely with an eye on layoffs. While many employees have already been laid off, the timing and scope of mass layoffs remain flexible.

On Tuesday, Mr. Musk announced on Twitter that users will start paying $8 per month for Twitter Blue, which will verify users with a checkmark. He said subscribers will see fewer ads, be able to share long videos, and bypass paywalls at news organizations that collaborate with Twitter.

“Power to the people!” he is chirp.

A Twitter spokeswoman declined to comment. Mr. Musk did not respond to a request for comment. IPG did not immediately respond to requests for comment. Previously a reporter for the tech and finance newsletter Morning Brew chirp IPG Recommendation.

Among the executives who have left Twitter in recent days is Leslie Berland, Director of Marketing; Jay Sullivan, Chief Product Officer; Sarah Personnet, chief customer officer, who managed the company’s relationships with advertisers; Dalana Brand, President, People & Diversity; and Nick Caldwell, CEO responsible for core technologies such as infrastructure. Their exits leave Twitter with the few leaders it had before Mr Musk closed the deal for the company on Thursday.

Ms Personet met with Mr. Musk last week to discuss Twitter’s advertising partnerships, she said in a statement tweet. after, after their meetingMr. Musk published an open letter to advertisers, saying Twitter would not become a “free place for everyone.” He also said that Twitter would set up a board to advise on content moderation.

In a tweet about her departure, Ms Personnet said she believed Mr. Musk’s team “recognizes the importance of adhering to the standards” set by the Global Alliance for Responsible Media.

Alliance Wrote in a blog post On Monday, he said he was monitoring how Twitter plans to set up a panel to review content moderation. She will share her assessments with members in the advertising industry. Twitter has been part of the alliance since the group was created in 2019.

“Brand integrity is non-negotiable for advertisers,” the group wrote.

IPG’s recommendation to pause spending on Twitter followed an announcement from General motorswhich said last week it had temporarily suspended its ads on Twitter. General Motors is a competitor to Mr. Musk’s electric car company, Tesla.

IPG, a holding company with several agencies that handle advertising spending, has clients such as American Express, Coca-Cola, Johnson & Johnson, Mattel and Spotify. Its Mediabrands division manages nearly $40 billion in marketing investments globally.

Katie Clumber, CEO of Black Glass, a consultancy owned by IPG, said the company surveyed many of its clients, including Walmart, Pepsi and Cadillac. Most of them said they were planning to pause their Twitter spending until they had more confidence and clarity in the direction of the platform, she said.

“They just chose to opt out of the drama,” she said. “They are actively watching this event, watching Elon and his comments every hour, saying, ‘Let me see how it all goes before I decide to attach my brand and my business to this. “

More than 40 civil rights groups also Send an open letter 20 top advertisers on Twitter on Tuesday, urging them to suspend their ads on Twitter if Mr Musk scraps safeguards for moderating the platform’s content. The letter, organized by groups like Free Press and Media Matters for America and signed by organizations like GLAAD and NAACP, was sent to top executives at companies like Amazon, CBS, Coca-Cola, Disney, Mondelez and Procter & Gamble.

“If Elon Musk follows through with a fraction of what he’s already committed to, Twitter is not and cannot be a safe platform for brands,” the groups wrote. Advertisers must take urgent action.

Ms Brand, who has overseen human resources and diversity initiatives at Twitter, said she did quit too Friday. Mr Caldwell hinted at his departure by updating his Twitter profile as a “former” Twitter CEO. Four people familiar with the matter confirmed that he and Mr. Sullivan had left the company.

Three people familiar with the matter said Ms Berland left Twitter on Tuesday. she Tweet blue heart emojiin an apparent reference to the Twitter brand’s color.

Ms. Personnet, Ms. Berland, Ms. Brand, Mr. Sullivan and Mr. Caldwell did not respond to requests for comment.

Mike Isaac Contribute to the preparation of reports.