Twitter has lost nearly half of its advertising revenue since Elon Musk purchased it for $44 billion (£33.6 billion) last October, according to its owner. According to Technology News UK, he stated that the company did not see the expected increase in sales in June, but that July was “a little more promising.” Mr Musk laid off roughly half of Twitter’s 7,500 employees when he took over in 2022 as a cost-cutting measure.
Threads, a competitor app, is now thought to have 150 million users. Its built-in Instagram connection automatically grants the Meta-designed platform access to a potential two billion users. Meanwhile, Twitter is struggling under a mountain of debt. Mr Musk stated over the weekend that cash flow remains negative, though the billionaire did not provide a time frame for the 50% drop in ad revenue.
“Need to reach positive cash flow before we have the luxury of anything else,” he tweeted.
Mr Musk stated that Twitter was on track to generate $3 billion (£2.29 billion) in revenue in 2023, down from $5.1 billion in 2021, after laying off thousands of employees and cutting cloud service bills. Mr Musk is also the CEO and majority shareholder of Tesla, which will release its latest quarterly financial results on Wednesday, reports Technology News UK.
