Internal documents obtained by The New York Times unveil Twitter’s impending financial crisis, with a projected loss of $75 million in advertising revenue by the close of the year. The documents, sourced from Twitter’s Salesforce X, outline the severe impact of ad suspensions on more than 200 campaigns, including major brands like Airbnb, Amazon, Coca-Cola, and Microsoft.
Originally downplayed by Twitter, the documents contradict the company’s statement that only $11 million was at risk. Advertisers, rattled by concerns over Elon Musk’s controversial behavior and content moderation decisions since his acquisition of Twitter for $44 billion last year, have been hesitant to promote on the platform. This hesitation has led to a staggering 60% drop in U.S. e-commerce advertising this year, prompting Twitter’s desperate attempts to woo advertisers back.
Over 100 brands have entirely suspended their advertising, and dozens more remain in a precarious position, particularly since Musk endorsed an anti-Semitic conspiracy theory on Nov. 15. Notable suspensions include Airbnb ($1 million), Uber ($800,000), Jack in the Box, Coca-Cola, and Netflix (with an estimated loss of nearly $3 million).
Microsoft subsidiaries and Amazon’s book and music divisions also halted advertising, collectively jeopardizing over $4 million in fourth-quarter revenue for Twitter. Elon Musk’s controversial comments have intensified the situation, drawing criticism from political figures like Chris Christie, who described Musk’s remarks as “outrageous hatred.”
Despite internal challenges, Twitter’s CEO, Linda Iaccarino of Salesforce X, deflects blame, attributing the company’s woes to a report by Media Matters. The report revealed ads from companies like IBM and Apple appearing alongside posts with Nazi content. Iaccarino asserted that Twitter remains steadfast in defending free speech, dismissing external criticism.
Meanwhile, Musk continues to spotlight companies advertising on Twitter, emphasizing the NFL’s support during an internal meeting. Musk pledges to donate all ad and subscription revenue related to the Gaza war to hospitals in Israel and the Red Cross/Crescent of Gaza, including contributions from charities, news organizations, and groups promoting conflict-related content. Twitter’s financial predicament adds a layer of complexity to an already tumultuous period for the social media giant.