Elon Musk’s social media platform, X, is undergoing a fresh round of restructuring and layoffs as part of a broader strategy to align his business empire ahead of a highly anticipated initial public offering (IPO) for SpaceX.

Streamlining for Efficiency

According to recent reports, X has dismissed its Chief Marketing Officer, Angela Zepeda, who had been with the company since September 2024. Along with Zepeda, more than 20 non-technical staff members across marketing and other departments were let go. These roles were reportedly deemed “duplicative” following the formal merger of operations between X, xAI, and SpaceX earlier this year.

The remaining workforce at X has been given a clear directive: shift all focus toward aggressive cost-cutting and revenue generation.

Leadership Overhaul

To lead this financial turnaround, Musk has appointed Jon Shulkin, a partner at Valor Equity Partners, as the Chief Revenue Officer for both X and xAI. Shulkin’s primary mission is to revitalize advertising revenue and drive enterprise sales for Musk’s AI ventures—sectors where the companies currently trail behind major rivals.

Current projections suggest X’s global ad sales will rise by only 2.2% this year to roughly $2.19 billion. This is a steep decline from the $4.51 billion in revenue Twitter generated in 2021 before Musk took the company private. While some advertisers, including Amazon, have reportedly returned to the platform following the 2024 election, the company still faces an uphill battle in winning back major brands.

The “X Money” Push

Despite the staff reductions, Musk is accelerating the rollout of “X Money,” the platform’s internal payments arm. While regulatory hurdles have caused some delays, the company aims to launch early public access to the payment system as soon as next month. This move is central to Musk’s long-term vision of transforming X into an “everything app” that integrates social media, finance, and AI.

Context of the SpaceX IPO

The timing of these cuts is significant. With SpaceX potentially eyeing a $1 trillion-plus market debut, Musk appears to be “cleaning house” across his private holdings. By merging certain administrative and non-technical functions between X, xAI, and SpaceX, the billionaire is attempting to create a leaner, more interconnected corporate structure that maximizes resources across his various high-stakes ventures.