Twitter’s revenue, adjusted earnings drop about 40 pct in December: Reports
Twitter Inc reported a drop of about 40 percent year-over-year in both revenue and adjusted earnings for the month of December, the Wall Street Journal reported on Friday citing people familiar with the matter.
The report comes after several advertisers slashed their spending on the social-media platform after Elon Musk took charge of the company on Oct. 27, resulting in a 71 percent drop in advertising spend on Twitter during December, data from advertising research firm—Standard Media Index showed.
Twitter did not immediately respond to a Reuters request for comment.
Musk, who warned in November about the possibility of the Twitter going bankrupt, said in December that the company was on track to be “roughly cash flow break-even” in 2023.
Twitter made its first interest payment in January on a loan that banks provided to help finance billionaire Musk’s purchase of the social media company last year.
Elon Musk’s Twitter Inc laid off dozens of employees on Saturday in what is at least the eighth round of job cuts since Musk took over the social network in late October, the Information reported.
The job cuts impacted multiple engineering teams, including those supporting advertising technology, the main Twitter app as well as technical infrastructure to keep Twitter’s systems up and running, the report in the US technology focused publication said early on Sunday, citing people with direct knowledge of the matter.
Twitter did not immediately respond to Reuters request for a comment.
In early November, Twitter laid off about 3,700 employees in a cost-cutting measure by Musk, who acquired the company for $44 billion.
The Information reported that the latest job cuts aim to offset a plunge in revenue following Musk’s takeover and further whittle down a staff that had shrunk by at least 70 percent to roughly 2,000.
Musk in November said that the service was experiencing a “massive drop in revenue” as advertisers pulled spending amid concerns about content moderation.
The job cuts impacted multiple engineering teams, including those supporting advertising technology, the main Twitter app as well as technical infrastructure to keep Twitter’s systems up and running, the report in the US technology focused publication said early on Sunday, citing people with direct knowledge of the matter.
