Twitter, which has been going through a major financial crisis since its acquisition by Elon Musk, continues to see its revenues fall.According to Musk, Twitter’s advertising revenue has fallen by 50 percent.The platform is also facing a heavy debt burden.
Elon Musk’s cost-cutting measures fail to boost Twitter’s revenues
After taking control of Twitter in October last year, Elon Musk implemented a series of cost-cutting measures. The billionaire, who laid off more than half of the company’s staff and put unnecessary items up for sale, also failed to pay his office rent for months.
The platform, which has expanded its Blue subscription and introduced a number of innovations, is still experiencing a decline in revenue.In his statement, Musk said that advertising revenue was down by almost 50 per cent. He said that earnings were still negative due to the debt burden.
Elon Musk has revealed that Twitter's recent access problems were caused by overloaded servers due to data scraping
Musk’s moves for Twitter have not been enough to attract new advertisers or convince his own advertisers to stay on the platform. He first said in March that he wanted to make the platform profitable.But four months on, he appears to have failed to achieve that goal.
On the other hand, he has recently started sharing ad revenue with Blue subscribers to attract influencers to Twitter. Time will tell whether this will be enough to turn the company’s finances around.
It is not yet clear what Musk’s next move will be to make Twitter profitable. Some analysts have suggested that he should sell the company or take it private.But Musk has no such plans.
