The Wall Street Journal said, on Friday, that Twitter recorded an annual decline of 40% in both revenue and adjusted profits for the month of December.
This report, which the newspaper quoted from informed people, comes following many advertisers cut their spending on the social media platform amid concerns regarding content management, following Elon Musk took charge of the company on October 27.
This led to a 71% drop in ad spending on Twitter during the month of December, according to data from research firm Standard Media Index.
Musk had warned last November of the possibility of Twitter’s bankruptcy, and said in December that the service was suffering from a “significant drop in revenue” and that the company was on its way to achieving “an almost break-even point of 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.
Last week, Twitter laid off 50 additional employees as part of the job elimination rounds that began following Musk acquired it.
In early November, Twitter cut regarding 3,700 jobs, as part of the spending-cutting plan that Musk launched following acquiring it for regarding $44 billion.
The job write-off process included many of the company’s engineering teams, including the ad technology support team, the main Twitter application support, as well as the infrastructure that helps keep the Twitter platform systems in general running.
Last Wednesday, Twitter users faced problems logging into their accounts on the network in many parts of the world.
According to Jasmine Enberg, an analyst at Insider Intelligence, the social network, which had more than 368 million monthly active users in the world in 2022, will lose regarding 32 million users by 2024, especially due to the spread of negative content and the increasing frequency of malfunctions.
