X, formerly Twitter, saw its UK division’s revenue collapse by 66% in 2023, as the platform struggled with advertiser flight and massive workforce reductions following Elon Musk’s acquisition.
Financial Freefall in the UK Market
According to official accounts filed this week with the UK’s Companies House, the entity still operating as Twitter UK Ltd experienced a drastic downturn in both revenue and profit throughout 2023. The data highlights a stark contrast to the company’s performance prior to the change in ownership.
The company confirmed that total revenue nosedived by 66.3%, falling to £69.1 million ($91.6 million) from the previous year’s £205.3 million ($272.3 million). Profitability also took a significant hit, dropping from £5.6 million ($7.4 million) to just £1.2 million ($1.6 million) over the same period.
Advertiser Exodus and Brand Safety Concerns
The precipitous decline has been largely attributed to a pullback in advertising spending. As reported by The Guardian, advertisers have expressed ongoing concerns regarding “brand safety and/or content moderation” on the platform.
In response to these challenges, the company stated that it “continues to take corrective measures to build brand safety tools, invest in platform safety and content moderation, and then educate advertisers about these initiatives.”
Deep Staffing Cuts
The financial instability was accompanied by a aggressive reduction in the company’s human capital. Mirroring the massive layoffs implemented at X’s U.S. headquarters, the UK office saw its headcount slashed significantly. The number of employees in the UK fell from 399 in 2022 to just 114 in 2023.
