Elon Musk’s X Saw UK Revenues Crash by 66% in 2023

Newly filed financial statements reveal a brutal year for X's UK operations, with revenue falling by two-thirds following Elon Musk’s high-profile takeover of the platform. The figures, submitted to Companies House, show revenue for 2023 dropped to £69.1 million ($92 million), marking a steep decline from the previous year.

The downturn reflects the broader impact of Musk’s sweeping changes at the company. After acquiring the platform (then Twitter) for $44 billion in October 2022, Musk made immediate waves by reinstating banned individuals and slashing headcount – from 8,000 to just 1,500 employees. Amid concerns over content moderation and brand safety, major advertisers quickly pulled their budgets, triggering a collapse in ad revenue.

According to the filing, this advertiser exodus was the primary driver of the revenue slump. Net profits followed suit, falling from £5.6 million ($7.5 million) in 2022 to just £1.2 million ($1.6 million) last year.

In response, X claims it has begun developing better brand safety tools, enhancing moderation systems, and revamping its ad sales approach. The company is also experimenting with new revenue streams like subscriptions, offering perks such as fewer ads, higher visibility, and the iconic blue checkmark.

Musk’s aggressive cost-cutting strategy extended well beyond layoffs. Reports highlighted office furniture auctions, unpaid rent disputes, and rapid restructuring – all part of his mission to make X leaner and more profitable.

Critics argue Musk's commitment to free speech often comes at the expense of platform stability, noting the mixed messages to advertisers. He famously challenged Apple over its advertising pause, asking if the company "hates free speech." At the same time, his silence on issues like China and disdain for public criticism raise questions about consistency.

Despite all this, some advertisers have returned. Brands like Apple, Disney, and Comcast resumed campaigns in late 2024, especially around the U.S. election cycle—suggesting signs of a cautious recovery.

Still, with 2024 financials not expected until next April, it remains unclear whether the rebound is sustainable or merely a short-term boost.