Since Elon Musk paid $44 billion (£33.6 billion) to acquire Twitter in October of last year, Twitter has seen a nearly 50% decline in advertising revenue, according to the company's owner.
Although he noted that July was "a bit more promising," he stated that the business had not experienced the boost in receipts anticipated in June.
When Mr Musk took over in 2022, he fired almost half of Twitter's 7,500 employees to reduce costs.
According to some estimates, Threads, a rival program, has 150 million users right now.
Did you read this?
A potential two billion people are instantaneously accessible to the Meta-designed platform thanks to its built-in connection to Instagram.
In the meantime, its rival needs help to pay off a large amount of debt. Although the entrepreneur omitted a time frame for the 50% decline in ad revenue, Mr Musk claimed at the weekend that cash flow remained negative.
He wrote on Twitter, "Need to reach positive cash flow before we have the luxury of anything else."
Mr Musk claimed that Twitter was on course to report $3 billion in revenue in 2023, down from $5.1 billion (£3.89 billion) in 2021, after firing thousands of staff and reducing cloud service costs.
This development indicates that more than aggressive cost-cutting measures are needed to encourage sponsors who left after the company's content control guidelines changed.
Despite that, the previous CEO said in an interview with the BBC in April that most people had revisited the site.
Twitter decided to limit how many tweets its users could read earlier this month. Unverified users can read 1,000 tweets daily, whereas verified users can read 10,000, according to the BBC, which has perplexed advertising executives.
It comes after initiatives to get users to sign up for Twitter Blue, a paid subscription service.
The hiring of Linda Yaccarino as CEO in June, who had previously served as NBCUniversal's president of advertising, suggests that Twitter continues to place a high focus on advertising sales.
According to Ms Yaccarino, Twitter intends to concentrate on video, creative, and business collaborations. It is rumoured to be in preliminary discussions with public figures in politics and entertainment, payment providers, and news and media companies.
