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Saturday, Jul 12, 2025

Twitter's Advertising Revenue Takes Significant Hit Amid Cost-Cutting Measures and CEO Change

Twitter's Advertising Revenue Takes Significant Hit Amid Cost-Cutting Measures and CEO Change

Twitter's advertising revenue has taken a significant hit since Elon Musk took over the company last year.
The tech billionaire, who bought Twitter for $44 billion, revealed in a recent interview that the social media platform has lost almost half of its advertising revenue since the acquisition.

Musk acknowledged that the company had not seen the expected increase in sales in June, but added that July was "a bit more promising." Musk's efforts to cut costs include laying off almost half of Twitter's 7,500 staff and cutting cloud service bills.

Despite these measures, Twitter is still struggling under a heavy debt load, and cash flow remains negative.

Musk has stated that the company needs to reach positive cash flow before they can focus on anything else.

The decline in Twitter's advertising revenue is a sign that the aggressive cost-cutting measures have not been enough to attract advertisers who fled after changes to the company's content moderation rules.

Despite Musk's interview with the BBC in April where he suggested that most advertisers had returned to the site, former head of partnerships at Snap and Meta, Meghana Dhar, said that the company was struggling prior to Musk's buyout.

Twitter's rival, Threads, owned by Meta, has 150 million users, according to some estimates.

This is a significant advantage for Threads, as it has automatic access to a potential two billion users through its in-built connection to Instagram.

Musk has appointed Linda Yaccarino, previously head of advertising at NBCUniversal, as the new CEO of Twitter.

This move suggests that advertising sales are still a priority for the company.

Yaccarino has stated that Twitter plans to focus on video, creator, and commerce partnerships.

The company is also said to be in early talks with political and entertainment figures, payments services, and news and media publishers.

Despite the struggles faced by Twitter, Musk remains optimistic about the company's future.

However, analysts are concerned about the company's financial situation, with Lucy Coutts of JM Finn stating that Musk has $13 billion of debt to pay by the end of July.

If Musk has to sell more of his st
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