Elon Musk's Twitter faces exodus of advertisers and executives

SAN FRANCISCO — Twitter is facing an exodus of executives and skittish advertisers as Elon Musk and his advisers take control of the social media company, prepare to lay off employees and make changes to the product.

At least three top Twitter executives — including the chief customer officer, the head of people and diversity and an engineering executive — have departed the company in recent days, according to three people with knowledge of the matter and public statements. Two announced their departures on Twitter on Monday but did not say why they quit. More executives may leave in the coming days, the people said.

At the same time, advertisers — who provide about 90% of Twitter's revenue — are increasingly grappling with Musk's ownership of the platform. The billionaire, who is meeting advertising executives in New York this week, has spooked some advertisers because he has said he would loosen Twitter's content rules, which could lead to a surge in misinformation and other toxic content.

IPG, one of the world's largest advertising companies with more than $9 billion in net revenue last year, issued a recommendation Monday through its media agencies for clients to temporarily pause their spending on Twitter because of moderation concerns, three people with knowledge of the communication said. The Global Alliance for Responsible Media, a coalition of platforms, advertisers and industry groups that is fighting harmful content on social media, also said this week that it was monitoring how Twitter planned to deal with content moderation.

Twitter has been in disarray as the company adjusts to a new reality under Musk, who closed his $44 billion buyout of the firm last week. Musk immediately fired Twitter's CEO, chief financial officer and others, before moving quickly to install close confidants and trusted engineers from his other companies at the social media firm.

Since then, Musk and his advisers have been working on product changes and major cuts to Twitter's rank and file. Managers at Twitter, which has about 7,500 employees, have said they are finalizing lists of high- and low-performing workers, most likely with an eye toward layoffs. While several employees have already been let go, the timing and scope of mass layoffs remain fluid.

A Twitter spokesperson declined to comment. Musk did not respond to a request for comment. IPG did not immediately respond to requests for comment. A reporter for the tech and finance newsletter Morning Brew earlier tweeted IPG's recommendation.

Personette met Musk last week to discuss Twitter's advertising partnerships, she said in a tweet. After the meeting with Personette, Musk published an open letter to advertisers, saying that Twitter would not become a "free-for-all hellscape." He also said Twitter would form a council to advise on content moderation.

In the tweet about her departure, Personette said she believed Musk's team "understands the importance of holding up the standards" set by the Global Alliance for Responsible Media.

The coalition wrote in a blog post Monday that it was monitoring how Twitter planned to set up a panel to review content moderation. It said it would share its assessments with members in the advertising industry. Twitter has been part of the coalition since the group's inception in 2019.

"Brand safety is non-negotiable for advertisers," the group wrote.

IPG's recommendation on pausing spending on Twitter follows an announcement from General Motors, which last week said it was temporarily suspending its advertising on Twitter. GM is a competitor of Musk's electric vehicle company, Tesla. IPG, a holding company with several agencies handling advertising spending, has clients such as American Express, Coca-Cola, Johnson & Johnson, Mattel and Spotify. Its Mediabrands division manages roughly $40 billion in marketing investment globally.

Personette, Brand and Caldwell did not immediately respond to requests for comment.

Musk and his team have also been working on changes to Twitter's product, including potentially charging users $20 to subscribe to its Twitter Blue service or lose the check mark badge that denotes verification.

After writer Stephen King tweeted Monday that he would leave the platform if the $20 plan was implemented, Musk responded Tuesday that "we need to pay the bills somehow! Twitter cannot rely entirely on advertisers. How about $8?"