Social media platform X (formerly Twitter) is set to hire engineers in Japan, according to a post by Chief Executive Linda Yaccarino on Thursday.
X CEO Yaccarino stated that the hiring initiative is expected to begin in 2024 with the establishment of an app development team aimed at creating functions and advertising products tailored to the Japanese market.
Addressing the Japanese Market's Demands
Reuters reported that the first X international crew will build new app features and advertising solutions to fulfill Japanese market expectations, notably from small and midsize firms. Linda Yaccarino, who replaced Elon Musk as the firm's CEO in June, said Japan is X's second-largest market after the US, and the new team will help build products and communicate with Japanese advertising.
With 550 million users globally, Japan accounts for 10% of X's user base, leading in text posts and user engagement. X is currently promoting an "everything app" that offers diverse services via smartphones, including short-text posts, AI-based searching, video calls, video uploading, and payments. While development work for the program has primarily been carried out in the US, the decision to hire engineers in Japan reflects a strategic move to better align with the needs of Japanese users for its evolving services.
The recent controversial actions of Elon Musk, who owns X, have led major American companies such as The Walt Disney Co., IBM, and Apple to withdraw their advertisements due to content that could be construed as antisemitic. This exodus has significantly impacted ad revenue, which constituted 90% of Twitter's total revenue before Musk's acquisition.
Enjoyed my visit to Rakuten's global headquarters in Tokyo. We are fascinated with the exponential growth of the company and diversified business and culture you have built. We will invest in Japan to better serve your business and all your customers! @XcorpJP @ayumu_matsuyama pic.twitter.com/3EEHow7UI9
- Linda Yaccarino (@lindayaX) December 6, 2023
"Elon offered a full apology on the issue and full explanation," Yaccarino said, as quoted by Nikkei. She stressed that there is "no place for antisemitism or hate anywhere on the platform."
Despite apologies and meetings following the controversies, Elon Musk blasted advertisers who withdrew, suggesting potential consequences for X and going as far as stating that their actions could lead to the demise of the social media giant.
Advertisers' Exodus Might Take Longer
Analyst Jasmine Enberg cautioned that the ongoing boycott might be prolonged, per Japan Today. Forecasts indicate a 54% contraction in ad sales to $1.9 billion this year, with concerns that Musk's confrontational approach might further accelerate the ad exodus.
Additionally, data from market analysis company SensorTower indicates that up to half of X's top 100 US advertisers in October 2022 have halted spending. Kellis Landrum, co-founder of True North Social, warned that this move could open opportunities for competitors to enter the market. While alternatives like Meta's Threads platform have emerged, they are yet to become formidable competitors.
Enberg pointed out that X is not essential for many advertisers, making temporary withdrawals relatively straightforward. Privately held, X has not released official figures, but estimates suggest a significant decline in users, with SensorTower reporting a 45% drop in monthly users in Q4 compared to the previous year.
