The Transformation of Twitter: The Impact of Elon Musk's Influence in Just One Year

It has been exactly one year since Elon Musk's acquisition of Twitter for $44 billion, leading to a series of unpredictable and abrupt changes for the company, its employees, and its users.

A year later, the company's appearance has drastically changed. Not only did Musk rename it "X" and discard its iconic blue bird logo, but he also made a plethora of bewildering and disorganized alterations. As a result, what was once a profitable company known as the global leader in breaking news and political commentary has now become a widely mocked platform that struggles to maintain financial stability and is burdened by debt. Moreover, it is grappling with the management of spam and misleading information, has alienated some of its major advertisers and users, and is searching for a new sense of purpose.

Despite the efforts of Musk and new CEO Linda Yaccarino to promote X as an "everything app," the company lacks a clear path to regain its former prominence or earn respectability. Furthermore, it is uncertain whether they will be able to recoup Musk's significant investment. The company's transformation has been marred by a constant stream of layoffs, resignations, policy reversals, problematic product launches, and unfulfilled promises. In addition to these challenges, X is currently dealing with various legal issues brought forth by former employees, contractors, and landlords, which have further complicated its prospects. Furthermore, the company is under investigation by regulatory bodies such as the US Federal Trade Commission, Securities and Exchange Commission, and EU officials, potentially resulting in penalties for both the company and Musk himself.

This illustration photo captured in Krakow, Poland on August 21, 2023 showcases the presence of Facebook, X, and Instagram icons on a phone screen. (Photo by Jakub Porzycki/NurPhoto via Getty Images)

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Musks X cashes in on superspreaders of Israel-Hamas misinformation, new report finds

X's claim of increased engagement is called into question due to their use of different metrics after the Musk takeover, making it challenging to compare accurately. According to a recent report by internet monitoring firm Similarweb, visits to the company's website have decreased by 14% compared to the previous September, surpassing the industrywide decline of 3.7% during the same period.

In a statement on Thursday, Yaccarino expressed her immense pride in the progress made by the X team in propelling the future of the company. The X CEO highlighted various new products and features introduced in the past year, such as the ability for companies to post job listings, extended posts, as well as audio and video calls exclusively for Premium users, which were rolled out this week. She emphasized that X is a platform where individuals can freely express themselves within legal boundaries, and safety remains of paramount importance.

Yaccarino expressed optimism about the accomplishments within a year, hinting at even greater aspirations for the upcoming year. However, X is currently confronting its most significant challenge under new ownership during the Israel-Hamas war. Various tech watchdogs and civil society organizations are expressing concerns regarding false claims and propaganda associated with the conflict that circulate on the platform. Additionally, as elections take place in the United States and other regions next year, there are growing worries about the dissemination of misinformation campaigns, casting doubt on X's value in facilitating public discourse.

Heads rolling

All of this transpired within a mere 365-day span, yet for numerous individuals, including beleaguered users who have migrated to alternatives like Threads, Mastodon, and BlueSky, it has felt more akin to a decade. Here's a (non-exhaustive) chronicle of how Musk has fundamentally transformed Twitter since he made one of the most significant acquisitions of the social media era.

In a series of successive layoffs following his takeover, Musk eliminated approximately 80% of the company's staff. The layoffs affected various departments, including policy, trust and safety, communications, ethical AI, and search, among others. As a result, the workforce was depleted and tasked with managing unstable systems that were previously described as fragile. Musk further reduced the workforce to save on expenses, exacerbating the issue. Consequently, the company's technical infrastructure became more susceptible to breakdowns, which caused a series of glitches earlier this year, impacting users' ability to access the site.

On December 19th, 2022, the outcome of a Twitter poll initiated by Elon Musk regarding his potential resignation as the head of Twitter has been revealed. The majority of respondents, amounting to 57.5%, expressed their support for his CEO resignation.

This development follows several significant events that have transpired over the past year. On October 28th, 2022, Elon Musk successfully concluded his acquisition of Twitter, which amounted to a staggering $44 billion. Prior to this, on September 13th, 2022, Twitter shareholders voted in favor of accepting Elon Musk's proposed buyout deal of $44 billion. However, this decision may lead to a trial in order to determine the fate of the deal. In response, Twitter made preparations for legal action against Elon Musk on July 10th, 2022, subsequent to his official announcement of terminating the $44 billion takeover agreement.

Earlier this year, on May 13th, 2022, Elon Musk announced via Twitter that his $44 billion takeover deal for Twitter was temporarily on hold until further details regarding spam accounts could be clarified. Before this setback, on April 25th, 2022, Elon Musk, renowned as the CEO of Tesla and SpaceX, successfully finalized the acquisition of Twitter with full approval from the Board of Directors. The transaction was valued at nearly $44 billion, marking a significant milestone. Prior to the finalization, on April 14th, 2022, Elon Musk presented an offer of $43 billion, equivalent to $54.20 per share, with the intention of acquiring the entirety of Twitter and transforming it into a privately owned company.

On April 11th, 2022, Elon Musk made an announcement reversing his decision to join the Twitter Board of Directors. However, on April 5th, 2022, he acquired a 9.2% stake in Twitter, becoming its largest shareholder, and concurrently securing a position on the Board of Directors.

The photograph attached depicts the Twitter logo outside their headquarters in Downtown Manhattan on October 14, 2020, amid the global Covid-19 pandemic. (NYC)

John Nacion/STAR MAX/IPx/STRMX/AP

Twitter layoffs continue under Elon Musk

Throughout the process, Musk terminated or accepted the resignations of key members of Twitter's previous leadership, including the former CEO, CFO, general counsel, policy chief, chief privacy officer, chief information security officer, director of product management, and head of trust and safety. Even individuals who had gained Musks trust and held high positions at the company have already departed.

Questions regarding the platforms ability to address security and privacy threats, as well as issues related to elections, misinformation, and hate speech, have been raised by US lawmakers and regulators due to the workforce reductions. Additionally, numerous former employees have accused Musk of failing to provide the severance benefits promised to them, while others claim that he has postponed such benefits and payments for executives' legal fees related to their work.

Product and policy overhauls

In his zeal to restore what he describes as "free speech" to X, Musk has made numerous policy and product decisions that have altered what users can see on the platform.

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He overturned Twitter's ban on former President Donald Trump, despite previously stating that the decision would be made by a "content moderation council" that never came to fruition. Additionally, he reinstated the accounts of white supremacists and conspiracy theorists that had been suspended. Various journalists were temporarily suspended from Twitter for reporting on a third-party account dedicated to tracking Musk's private jet, even though he had previously criticized the platform's suspension practices.

Under Musk's leadership, the company removed specific protections for transgender individuals from Twitter's policy against hateful conduct. He also made it easier for politicians and political candidates to qualify for exemptions from Twitter's rules based on newsworthiness, even when their content should have been restricted or removed. Furthermore, the platform reversed a ban on political and issue advertising that was implemented in 2019. They introduced an updated "zero-tolerance" policy on violent speech, which was nevertheless more vague and subjective than its predecessor. Finally, Twitter updated its privacy policies to state that users may choose to allow the collection of their biometric information, as well as job and education history.

However, one of the most notable changes has been Musk's decision to replace Twitter's traditional verification badges (known as "blue check") with a new form of verification that no longer guarantees authenticity.

Shortly after assuming control, Musk introduced, then retracted, and later reintroduced a subscription feature that offered a blue verification badge to any user who paid the monthly subscription fee of $8. Critics cautioned that this system would result in widespread impersonation and weaken a feature that used to inspire trust in what users encountered on the platform.

SpaceX CEO Elon Musk provides an update on the development of the Starship spacecraft and Super Heavy rocket at the companys Launch facility in south Texas.

Jonathan Newton/The Washington Post/Getty Images/FILE

Elon Musk wants Twitter users to pay to be verified. It could create a new set of headaches for the company

When the feature was initially introduced, Twitter experienced a surge of verified impostors, falsely posing as Nintendo and LeBron James among others. In response, the platform revoked the badges of accounts that had been verified under the old system. To address the frustration of certain prominent users, Musk volunteered to personally cover the cost of verification for James and others.

Under the new system, users who pay for verification enjoy enhanced visibility for their posts through the platform's algorithm. More recently, X implemented an advertising revenue share program for verified users, providing payouts to those who generate engagement. This introduces potential financial incentives for engagement farmers and misinformation peddlers, as they can exploit the system by sharing inflammatory or misleading claims.

X leaders have repeatedly highlighted "Community Notes," an enhanced version of Twitter's "Birdwatch" user-generated moderation system introduced in 2021. This week, X announced that Community Notes now boasts over 100,000 volunteer user-moderators from 44 different countries who contribute by attaching contextual labels to platform content.

However, several reports have indicated that Community Notes is encountering challenges in fulfilling its objective, with issues such as user delays in adding labels and attempts by malicious users to manipulate the system. (In a statement on Thursday, Yaccarino acknowledged that Community Notes are becoming quicker and highlighted the ongoing improvements despite its imperfections.)

Musk's actions have resulted in alienating and distancing numerous journalists who had previously played a significant role in disseminating accurate information on the platform. A notable instance occurred in April when Musk referred to NPR and PBS as "state-affiliated media," causing them to completely disassociate from the platform. This label misleadingly suggested that they are heavily backed by government entities or lack editorial independence. Although the platform later modified the label to "government-affiliated media" and eventually removed it entirely, the affected outlets have not returned.

Moreover, many of Musk's content and product decisions have been criticized by civil society groups for contributing to the distressing proliferation of hateful speech on the platform.

Sluggish business

During the initial stage of Musk's leadership, numerous significant advertisers on Twitter, such as General Mills and the Volkswagen Group, halted their expenditure due to apprehensions regarding X's workforce downsizing, content moderation capabilities, and overall uncertainty surrounding the platform's future.

The company's revenue plummeted due to a significant decrease in advertising, and it is still struggling to fully recover. Musk has strongly criticized the brand's detractors, accusing them of intentionally sabotaging and even taking legal action against one watchdog group, the Center for Countering Digital Hate. He has also threatened to sue the Anti-Defamation League for allegedly damaging the brand with claims of increasing hate speech on X.

In response, X has stated that incidents of hate speech have decreased and has highlighted new brand safety measures that allow advertisers to control the type of content their ads are associated with. However, these safety measures have encountered some initial obstacles.

The companys leaders have offered conflicting views on the state of its financesmaking it unclear when and if Xs business can be revived.

Linda Yaccarino, Chairman of Global Advertising & Partnerships at NBCUniversal, appearing on stage during the (Ad)Ventures in Venture: Led By Women event at Advertising Week New York on October 19, 2022 in New York, USA.

CEO Linda Yaccarino states that X is approaching breakeven point. Elon Musk had previously mentioned that the company was experiencing negative cash flow due to a significant decrease in ad revenue and a high amount of debt. However, Yaccarino later revealed that several major advertisers had come back and the company was now nearing breakeven. Musk contradicted this by stating that US advertising revenue was still down by 60%. Nevertheless, Yaccarino expressed optimism that the company could achieve profitability again in the early months of the following year.

Meanwhile, the banks that loaned money to Musk for his takeover are still struggling to offload the debt partly due to the chaotic leadership of the billionaire, according to the Wall Street Journal.

Yaccarino's appointment as CEO in June indicated Musk's determination to regain advertisers, as her successful career as an ad executive at NBCU, along with her upbeat personality on X, hinted at a promising future for the company. However, as Musk continues to make impromptu announcements about the company's plans, sometimes catching Yaccarino off guard, there has been widespread speculation about the true extent of her authority and influence within the company.

Musks erratic behavior

During a recent interview, Yaccarino emphasized that she operates independently from Musk in her role as CEO. She mentioned, "Elon focuses on advancing the technology and conceptualizing future innovations," while she takes charge of bringing those ideas to the market.

Throughout it all, Musk has consistently positioned himself as the central figure on the platform, actively engaging in important contemporary issues regardless of his knowledge about them. When Paul Pelosi was violently attacked in his residence, Musk unfoundedly amplified fringe conspiracy theories surrounding the incident. He encouraged X users to track the Israel-Hamas conflict through a disinformation-spreading account, though he later deleted his post. Musk has indirectly supported "Dilbert" creator Scott Adams despite racist remarks and has publicly criticized financier George Soros, a frequent target of anti-Semitic conspiracy theories.

Musk seems to possess a strong fixation on his own popularity on the platform, reportedly pressuring engineers to enhance visibility of his posts in users' feeds due to dissatisfaction with his posts receiving fewer views than President Joe Biden's during the Super Bowl.

Tesla CEO Elon Musk and his security detail depart the company's local office in Washington, U.S. January 27, 2023.

Jonathan Ernst/Reuters/FILE

Elon Musk publicly mocks Twitter worker with disability who is unsure whether hes been laid off

Musk has used his ownership of Twitter to endorse politicians he personally supports. This includes organizing a live Spaces event, which encountered technical issues, to launch Florida Republican Gov. Ron DeSantis' presidential campaign. Musk also held another Spaces event to promote Robert F. Kennedy, Jr., a vaccine skeptic and presidential candidate, along with promoting an interview between former Fox host Tucker Carlson and republican contender Vivek Ramaswamy. Additionally, Musk hosted a live discussion with Benjamin Netanyahu, the conservative Israeli prime minister. While Musk claims to be open to hosting politicians from different ideologies, there have been few if any instances of him promoting politicians he disagrees with in similar events.

Furthermore, Musk provided select journalists with access to company records in an effort to prove that former Twitter executives intentionally discriminated against conservatives on the platform. These records resulted in reports known as The Twitter Files, which aimed to expose a campaign of suppression. However, the internal communications actually supported existing accounts of Twitter's struggles in handling a 2020 New York Post article involving Hunter Biden and his laptop. Musks' own lawyers later disputed the implications and claims made in The Twitter Files as they sought to prevent Trump from taking legal action against the company.

Musk has utilized the platform to promote his other companies and respond to his critics, including former employees and regulatory bodies investigating his ownership of the platform.

Perhaps it is Musk's overwhelming presence that has eroded what users previously enjoyed about Twitter. It used to be a space for diverse voices, where users could lead discussions with the most newsworthy, entertaining, or controversial content. While there was some toxicity, it was often overshadowed by valuable, current news and commentary. Now, it has become the Musk show, and users are becoming more inclined to disengage.