Twitter makes major policy reversal on political advertising

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Twitter says it will expand the types of political ads allowed on the social media platform.

The move is a reversal of the company's 2019 stand banning political ads on a global basis.

It is a way the Elon Musk-owned company can increase revenue.

The company tweeted saying it would relax its advertising policy for "cause-based ads" in the United States, and moving forward would align its advertising policy "with that of TV and other media outlets."

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In 2019, then CEO Jack Dorsey announced the company was banning all political ads amid growing concerns that political advertising on social platforms could spread misinformation or depress voter turnout ahead of the U.S. 2020 elections.

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In this photo illustration, Elon Musk is pictured with a Twitter logo displayed on a smartphone screen. (Photo Illustration by Sheldon Cooper/SOPA Images/LightRocket via Getty Images / Getty Images)

Since Musk took over Twitter in late October, corporate advertisers have fled in response to the Tesla CEO laying off thousands of employees, reversing the permanent suspension of former U.S. President Donald Trump and rushing a paid verification feature that resulted in scammers impersonating publicly-listed companies on Twitter.

Last month, Musk defended his deep cost-cutting measures, and said Twitter had been facing "negative cash flow" of $3 billion next year.

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Musk reportedly continuing to cut costs by reducing the amount of office space at the company's headquarters in San Francisco, California.

Low-angle view of sign with logo on the facade of the headquarters of social network Twitter in the South of Market neighborhood of San Francisco. ((Photo by Smith Collection/Gado/Getty Images) / Getty Images)

A report by the San Francisco Business Times which cited the New York Times, said that Twitter has consolidated the office space footprint at its downtown San Francisco headquarters from six floors to two. 

Reuters contributed to this report.