On Sunday, Elon Musk – CEO of Twitter, Tesla, and SpaceX – declared that the prior several months had been “extremely tough,” but he believes that Twitter is on track for breaking even if they stay the course. Though CNBC could not confirm this fact independently, Musk elaborated in a tweet that is saving Twitter from bankruptcy while managing his other companies has taken an immense toll on him; however, it appears their hard work may pay off soon. He concluded by expressing gratitude for public support throughout these trying times.
After Elon Musk’s Acquisition, Twitter Had a Huge Decline in Revenue
Tesla CEO Elon Musk, who has recently adopted the nickname “Mr. Tweet,” acquired Twitter late last year for a staggering $44 billion – yet since then, it’s been anything but smooth sailing. Platformer announced that in January 2023, daily revenue was down 40% year-over-year, and hundreds of top advertisers have pulled their spending from the social media platform entirely. Reuters reported an even more alarming statistic: 70% ad revenue decline in December compared to the same month one year prior.
Regrettably, some of Elon Musk‘s decisions on Twitter – such as reinstating the accounts of certain contentious characters like Andrew Anglin, the founder of a neo-Nazi website – provoked public uproar from civil rights advocates and caused notable brands to withdraw their support from the platform. In a tweet in November, Musk admitted that after advertisers stopped spending on Twitter due to these changes, there was a huge dip in revenue for his company.
Elon Musk Took Multiple Steps To Make Twitter Profitable Again
At the close of 2022, Elon Musk declared that Twitter was no longer on a path to bankruptcy; however, he did not regard it as “safe” during an All-In Podcast episode with his long-time companions and investors in Twitter – Jason Calacanis and David Sacks from Craft Ventures.
Under Musk’s guidance, Twitter underwent radical restructuring, which included massive job cuts and other terminations. This led to a much-needed overturn of the work-from-home forever policy that was established during Jack Dorsey’s tenure as CEO. As a result of these drastic changes, many employees had no choice but to resign from their posts.
To induce additional profit, the firm has sought out novel revenue sources. As an example of this strategy, Twitter auctioned off a vast array of items ranging from kitchenware to office furniture in January. Moreover, they introduced (and revived) their advanced Twitter Blue subscription service last December after Elon Musk had postponed and removed it the prior month. Additionally, he more recently chose to impose fees on researchers seeking access to the company’s API while simultaneously discontinuing free admission.
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