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X’s UK division saw revenue decline 66% in 2023 following Musk’s takeover
X's UK division saw a 66% revenue decline in 2023, dropping to £69.1 million, attributed to reduced advertising spending due to brand safety concerns. Profit also fell to £1.2 million. The company is implementing measures to improve brand safety and has significantly reduced its workforce in the UK from 399 to 114 employees post-Musk's takeover.
Key points
- Revenue in the UK dropped 66.3% to £69.1 million from £205.3 million year-over-year due to lower advertising spending.
- Profit in the UK declined from £5.6 million to £1.2 million in the same period.
- The revenue decline is attributed to concerns over brand safety and content moderation.
- X is taking corrective actions to improve brand safety and educate advertisers.
- Employee count in the UK decreased from 399 to 114 following redundancies after Musk's takeover.
Why it matters
- This decline in revenue reflects broader concerns in the advertising industry about platform safety and content moderation, a significant trend in 2025.
- Musk's management style, characterized by aggressive layoffs and rapid changes, raises parallels with other tech crises resulting from leadership shifts.
The significant revenue decline for X's UK division showcases the impact of leadership changes on advertiser confidence, emphasizing the need for brand safety and content moderation in the social media landscape.