Elon Musk said Twitter is now on track to be “roughly cash flow break-even” next year, as the billionaire owner defended his deep cost-cutting measures on the social media platform.
Twitter The first was eyeing a “$3 billion (roughly Rs. 24, 870 crores) per annum negative cash flow position” before cost-cutting, Musk said on Wednesday, speaking in twitter space audio chat.
Since taking over Twitter on October 27, Musk has laid off 50 percent of the company’s workforce and demanded longer working hours and a “hardcore” culture for the remaining employees, which has led to more employee departures. . The controversial move has upset advertisers, who account for 90 percent of Twitter’s revenue.
“We have an emergency fire drill on our hands,” Musk said. “That is the reason for my actions.”
Musk said Twitter was earlier on track to spend $5 billion (about Rs 41,440 crore) next year. With a debt of $12.5 billion (roughly Rs. 1,03,600 crores) due to the acquisition, Twitter was facing a net cash outflow of $6.5 billion (roughly Rs. 53,890 crores) next year with revenue of $3 billion. Musk said this amounted to negative cash flow of $3 billion.
During the Space session, Musk said his “number one priority” was to grow subscriber revenue so it became a meaningful part of Twitter’s business, at a time when companies are cutting their advertising budgets in a weak economy.
Musk said that Twitter currently has more than 2,000 employees.
Meanwhile, oysters also Said He will resign on Tuesday when a replacement CEO of Twitter is found. His reply came in an apparent response to a poll he started which suggested users wanted him to quit.
“I will resign as CEO as soon as I can find a fool to take the job!” Musk tweeted that only after that he would run the software and server team at Twitter.
© Thomson Reuters 2022