Elon Musk’s social media platform, X (formerly known as Twitter), announced that it will fund the legal bills of individuals who have been treated unfairly by their employers due to their posts or likes on the platform. Musk made this commitment without any limitations on the funding amount.
Elon Musk earlier announced that X will take some time to share the advertising revenue with the content creators as the company needs more time to process large number of requests. Moreover, only the subscribers of X Premium (Blue) will be eligible to receive their share in the ad revenue and Elon Musk cleared that if one is not a premium member their ad revenue will be kept by the company as reported by Mint earlier.
Few days ago, Musk revealed that X has achieved a significant milestone with monthly users reaching over 540 million. The company is going through organisational changes and striving to address declining advertising revenue.
In July, twitter rebranded itself with the new name X and a new logo replacing the iconic 17 years old blue bird logo, signalling a shift towards becoming an “everything app” and broadening its focus beyond its previous identity as Twitter.
Despite these developments, X’s cash flow remains negative due to a 50 percent drop in advertising revenue and a substantial debt burden. An expected upturn in advertising revenue in June did not materialise.
Since Elon Musk’s takeover of X, the platform has faced challenges in managing inconsistency, which has led to advertisers withdrawing their support. Another major factor contributing to advertisers’ withdrawal is the platform’s content moderation compromise. Advertisers are concerned about their ads appearing alongside inappropriate content.
In response to the financial difficulties, X implemented stringent cost-cutting measures, resulting in the layoff of thousands of employees. Musk stated that the company managed to reduce its non-debt expenditures from a projected $4.5 billion to $1.5 billion in 2023.
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Updated: 06 Aug 2023, 11:28 AM IST