As a result of hundreds of advertisers leaving the platform, Twitter has lost 40% of its revenue compared to last year. The Information published the report on Wednesday, citing insiders with knowledge of the situation.

Over 500 advertisers on Twitter, according to the report, have stopped spending money on the microblogging website. Reuters contacted the company for comment, but the company did not immediately respond.

The technology newsletter Platformer first noticed the huge drop in revenue on Tuesday.

Advertisers have gradually left Twitter since Elon Musk took control in October of last year, when the billionaire fired thousands of employees in a week. After Twitter realized that these workers were required to run the business, some of them were later called back to work.

Additionally, the platform rushed a new verification method, resulting in fraudsters impersonating businesses and millions of dollars in losses. This method allowed virtually anyone to impersonate well-known individuals or businesses and only required Twitter users to pay $8 for verification.

This contentious version of Twitter Blue was promptly removed from the platform, but it later reappeared with crucial updates. You can still pay $8 for verification, but now Twitter moderators manually check the disputed accounts.

In addition, Twitter recently announced that it would relax its advertising policy for "cause-based ads" in the United States and lifted its 2019 ban on political advertisements. Additionally, this would align the company's advertisements with TV and other media.

Additionally, the company ran into legal trouble for failing to pay the office rent for its headquarters in San Francisco.