Twitter’s revenues and profits declined significantly, after many advertisers cut their spending on the popular social networking platform.
The Wall Street Journal reported, citing people familiar with the matter, that Twitter posted a 40 percent annual decline in both revenue and adjusted earnings for December.
This report comes after many advertisers cut their spending on the social media platform after Elon Musk took charge of the company on October 27, which led to a 71 percent decrease in advertising spending on Twitter during the month of December, according to data. Advertising research firm Standard Media Index.
Musk had warned last November that Twitter might go bankrupt.
He said in December that the company was on track to achieve “nearly break-even cash flow” in 2023.
Twitter made its first interest payment in January on a loan provided by the banks to help fund billionaire Musk’s purchase of the social media company last year.
Twitter has laid off at least 200 employees, or about 10 percent of its workforce, in the latest round of layoffs since Musk took over the popular social network in late October.
The New York Times report quoted people familiar with the matter as saying that the job cuts included production managers and data experts, as well as many engineers who work to develop and support e-learning technology, which helps maintain Twitter’s various advantages on the Internet.
Twitter did not immediately respond to a Reuters request for comment.
Musk said last month that the company has about 2,300 employees.
In early November, Twitter laid off about 3,700 employees in a cost-cutting measure taken by Musk, who acquired the company for $44 billion.
For his part, the American technology website (The Information) indicated that the recent job cuts aim to compensate for the decrease in revenues after the company’s mask took over, and also to reduce the number of employees, which had already shrunk by 70 percent.
Musk said in November that the service was experiencing a “significant drop in revenue” as advertisers held back from spending amid concerns about content management.
