Elon Musk, the billionaire and owner of Twitter Inc., backed his extensive cost-cutting measures at the social media platform and stated that the firm is now on course to achieve “roughly cash flow break-even” next year.
Prior to the budget reductions, Twitter was on pace to achieve a “negative cash flow situation of $3 billion per year,” as per Musk, who was speaking in a Wednesday Twitter Spaces audio session.
Since getting hold of Twitter on October 27, Musk has terminated 50% of the staff and insisted that the remaining employees adapt to long working hours and a “hardcore” culture, which has resulted in a rise in employee departures. 90% of Twitter’s profits come from advertisers, and the controversial decisions have spooked them.
“We have an emergency fire drill on our hands,” Musk said. “That’s the reason for my actions.”
Twitter was on course to invest $5 billion next year, as per Musk. With $12.5 billion in debt incurred as a consequence of the deal, Twitter was predicting a $6.5 billion net cash outflow with $3 billion in revenue next year. According to Musk, that contributed to a $3 billion cash flow loss.
At a time when firms are reducing their advertising expenditures in a failing economy, Musk indicated during the Spaces session that growing subscriber revenue was his “number one priority” for Twitter.
Slightly more than 2,000 people actually work for Twitter right now, Musk said.
Earlier on Tuesday, Musk stated that after appointing a successor, he will leave his role as Twitter’s CEO. He further assured users that he will submit his resignation as soon as he finds someone “foolish enough to take the job” only after the result of the poll that revealed almost 57.5% of Twitter users chose “yes” to him quitting as CEO of Twitter.
Musk posted a poll on Sunday night where he asked users if he should step down from the role of the CEO of the microblogging platform. For the first time, Musk publicly said in his tweet that he would leave the role from the social media platform.
Twitter users won’t be able to link to certain Alternative social media platforms such as Instagram, Facebook, and Mastodon which the industry refers to as “prohibited platforms.”
It also banned the Twitter account which was analyzing movements of his private jet, Twitter’s new CEO, Elon Musk, is undertaking yet again another step to restrict certain types of communication.