Twitter revenue is 'DOWN 40% from a year ago and more than 500 advertisers have paused spending on the platform' since Elon Musk's $44B takeover: Company auctions off office supplies including coffee machines
- Musk continues to auction off items from the site's San Francisco HQ
- $18,000 coffee machine and $8,000 '@' sculpture are among items up for grabs
- Firm is also facing legal action for failing to pay rent on a number of its offices
Twitter has suffered a 40 percent drop in revenue since last year, as more than 500 advertisers pause spending on the microblogging site.
Elon Musk's $44billion takeover of Twitter last October has been mired in controversy after the entrepreneur sacked thousands of staff without notice.
Now, insiders have told technology newsletter Platformer that the site's daily revenue on Tuesday January 17 was 40 percent lower than the same day a year ago.
In the first quarter of 2022, Twitter generated $1.2billion in revenue - or the equivalent of $13.3million a day. If its revenue is now running 40 percent below that, it would currently be making $8million a day.
More than 500 advertisers have paused spending since Elon Musk took over the site
Twitter revenue has dropped 40 percent, insiders claim, meaning daily revenue is estimated to be around $8million, based on figures from the first quarter of 2022
Meanwhile, more than 500 advertisers have paused spending with the site since Musk's takeover, reports The Information.
Engineering manager Siddharth Rao is said to have informed employees of the drop in a presentation to staff on Tuesday.
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Advertisers have been spooked by the company's mass lay-offs and Musk's rush to implement a paid verification feature that resulted in scammers impersonating companies on Twitter.
The social media platform also recently reversed its 2019 ban on political ads and said that it would relax advertising policy for 'cause-based ads' in the United States and align its ad policy with TV and other media outlets.
In November, Musk admitted there had been issues with advertising revenue, telling his followers: 'Twitter has had a massive drop in revenue, due to activist groups pressuring advertisers, even though nothing has changed with content moderation, and we did everything we could to appease the activists.'
He added: 'Extremely messed up! They're trying to destroy free speech in America.'
On Wednesday, Twitter was trading at $53.70, down 1.09 percent on last year.
In November Musk tweeted that the firm was losing advertisers due to 'activist groups' claiming they were 'trying to destroy free speech in America'
The company has yet to publish its fourth quarter earnings, which are set to be released February.
Musk had planned to diversify Twitter's revenue away from ads in the long run. However, the sudden drop in spending will likely hamper the company in the medium term.
Musk has already axed 75 percent of its 7,500-strong workforce, resulting in dozens of laid-off workers now trying to sue the company for firing them without warning.
And the firm is also facing a lawsuit from the landlord of one of its San Francisco offices for failing to pay rent.
Court records show the social media giant missed a rent payment of $136,260 for its 650 California Street office.
The building is not Twitter's official HQ, which is located nearby on Market Street.
Similar problems have emerged at its other offices, including one in Seattle where it is facing eviction for failing to pay rent.
Staff in the Seattle location have been told they must now work from home.
The report of losses comes as supplies from Twitter's HQ are now being listed on auction website Heritage Global Partners.
Chairs from the company's offices were being sold for more than $1,000.
Musk first announced in December that he was putting items from the company up for sale, claiming he wanted to clear out its HQ of its 'woke' supplies.
Items from Twitter's San Francisco have gone up for auction on Heritage Global Partners, with an '@' sculpture planter, pictured, going on sale for $8,250
Other items available include chairs, fridges, Mac desktops, several white boards and several unpackaged desks
This included a massive Twitter bird statue and valuable luxury items, such as a $20,000 espresso machine, a $10,000 vegetable dryer and a $17,000 braising pan.
An espresso machine that is worth around $18,000 is up for grabs on the auction website
An '@' shaped planter is also up for grabs, with its current bid standing at $8.20.
Bidding for the items opened yesterday at 7am and will end at 10pm tonight.
DailyMail.com has reached out to Twitter for comment.
Twitter stock was trading at $53.70 on Wednesday, down 1.09 percent from last year
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