Tensions between Elon Musk and his top executive Linda Yaccarino at X are increasing, while the financial health of the platform remains concerning. Yaccarino, who was appointed CEO a year ago, is under significant pressure from Musk to boost revenue and reduce costs.

Yaccarino has fired her closest confidant and head of the business and communications department, Joe Benarroch, reported three people familiar with the matter. Benarroch was held responsible, among other things, for poorly implementing the introduction of the platform's new adult content policy by not informing customers before its release.

The tasks of Benarroch are now temporarily taken over by Nick Pickles, who heads global government affairs and whose role now also includes global communications. Pickles, one of the few high-ranking employees to have survived Musk's takeover, accompanied Yaccarino and Musk this week for the first time to the Cannes Advertising Festival.

This restructuring is seen as beneficial for Pickles, who previously ran as a conservative member of Parliament in the United Kingdom and quickly rose through the ranks of the platform to oversee its public policy and government relations.

The tensions between Musk and Yaccarino escalated as she attempted to stabilize X's financial health. Musk increased the pressure by demanding that she boost revenues and cut expenses, for example by reducing the US and UK sales teams and cutting travel costs.

At the same time, in April, Musk brought in Steve Davis, a longtime ally and CEO of The Boring Company, to review the finances and performance management of X. Davis is currently assessing the dismissal of underperforming employees and plans to cut dozens of positions.

Davis was previously involved in cost-cutting measures at X and helped decide on job cuts as well as renegotiating data licensing agreements following the acquisition by Musk.

During the Cannes advertising festival, Musk and Yaccarino are trying to win back advertisers like Disney, IBM, and Apple who had halted their spending due to concerns over content moderation and Musk's provocative leadership style. According to X, more than 60 percent of the brands that had paused their advertising have resumed it in recent months.

X and Musk did not respond to requests for comment. Benarroch, whose departure was first reported by the Wall Street Journal, also did not respond to requests.