Elon Musk’s Twitter told investors its revenue and adjusted earnings fell approximately 40% year-over-year in December, The Wall Street Journal reported on Friday.
The Journal, citing people familiar with the matter, reported that an update to investors spelled out the social media site’s steep declines in its second month under CEO Elon Musk’s ownership. Twitter did not return Barron’s request for comment.
Twitter has faced a rocky 2023 so far: The company’s revenue was down 40% year-over-year at one point in January, multiple outlets reported at the time. A flurry of advertisers pulled back on ads on the platform after Musk’s takeover amid fears about how the site may be affected by changes to moderation and staffing.
Twitter has been slashing expenses through layoffs and other cost-cutting measures since Musk took over as chief executive in late October following the close of his $44 billion acquisition.
As part of the buyout, Twitter took on $13 billion in debt, with annual interest payments of around $1 billion.
In early February, Musk said that Twitter was “trending to breakeven,” but multiple outlets reported the firm laid off more staff later that month.
Musk has said he wants to leave Twitter to a successor, though that timeline is unclear.
Source: Barrons
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