Twitter has lost 40% of its revenue compared to last year following hundreds of advertisers pulling away from the platform. The Information published the report on Wednesday, citing insiders familiar with the situation.
According to the report, over 500 Twitter advertisers have paused their spending on the microblogging website. Reuters’ request for comment was not immediately responded to.
The massive revenue drop was discovered on Tuesday by the technology newsletter Platformer.
Since Elon Musk took over Twitter in October of last year, advertisers have gradually left the platform as a result of the billionaire firing thousands of employees within a week.
After Twitter realised they needed them to run the company, some of these employees were called back.
In addition, the platform rushed a new verification method, resulting in scammers impersonating companies and causing millions of dollars in losses.
This method charged Twitter users only $8 for verification, allowing almost anyone to impersonate a well-known person or company.
This contentious version of Twitter Blue was quickly removed from the platform, only to be reintroduced with much-needed updates. You can still pay $8 for verification, but Twitter now verifies accounts manually through moderators.
Furthermore, Twitter recently lifted its 2019 ban on political ads, claiming that it would relax its advertising policy for “cause-based ads” in the US. This would also bring the company’s advertisements in line with those seen on television and other forms of media. In addition, the company was sued for failing to pay its office rent in San Francisco.
To read our blog on “Due to Elon Musk’s odd behavior, Twitter rival Mastodon gained Millions of users,” click here