Twitter India's ad revenue drop triggers 90% profit decline

Twitter Communications India, which is now part of X Corp (formerly known as Twitter), has reported a significant decline in both net profit and revenue for the last financial year. This downturn is primarily attributed to a drastic fall in advertising revenue following the dismissal of the global ad sales team under Elon Musk's new leadership, according to a report from Economic Times.

Regulatory filings reveal that the company's net profit plummeted 90%, dropping to Rs 3 crore from Rs 30 crore in the previous year. Similarly, revenue saw a steep decline of 90%, falling from Rs 208 crore to Rs 21 crore. Advertising remains a critical source of income for Twitter in India.

In response to these challenges, the company slashed employee benefit expenses by 95%, decreasing from Rs 130 crore to Rs 6 crore, following the termination of nearly its entire Indian workforce, which once numbered over 200 employees. As a result, total expenses fell by 89%, down from Rs 168 crore to Rs 19 crore.

The combination of laying off the ad sales teams and the retreat of global brands from the platform—partially due to ongoing disputes with Musk—has contributed to this sharp revenue decline.

Under Musk’s leadership, X Corp has even pursued legal action against major advertisers like Unilever and Mars for their decision to boycott the platform. Research by Kantar indicates that 26% of marketers are planning to cut their advertising budgets on X in 2025, marking the largest recorded reduction from any significant global ad platform.