According to recent statements from Elon Musk, Twitter’s advertising revenue has experienced a significant decline of around 50% since the takeover of the platform. Initially, there were hopes for improvement in June, but unfortunately, those expectations didn’t meet. However, there has been some progress back in July. In 2022, when Musk took over Twitter, the staff reduction became necessary to cut down on costs, resulting in approximately half of the 7,500 employees being let go.

Recently, a rival app “ Threads” by Meta has gained popularity with an estimated user base of around 150 million. Its success can be attributed to its integration with Instagram, thereby reaching a sizeable number of users. However, Twitter is currently facing challenges such as having more outflow of the funds than incoming revenue and managing a substantial amount of debt. Elon Musk has emphasized the importance of prioritizing cash flow above all other concerns.

Despite efforts from Twitter to reduce expenses, the platform continues to experience a persistent decline in ad revenue. This decline can be attributed to advertisers returning after changes were made to content moderation rules. The recent limitation on the no.of tweets a user can read tweet limits on the platform has left advertising executives feeling uncertain and puzzled.

Linda Yaccarino, the recently appointed CEO of Twitter, is focusing on rejuvenating the company's advertising sales. Her main areas of focus include forming video partnerships, collaborating with content creators and exploring opportunities in commerce. It has been reported that Twitter is currently in talks with prominent figures from the entertainment industry, payment service providers and news publishers as they chart their path forward.