Elon Musk mentioned Twitter is now on monitor to be “roughly cash flow break-even” subsequent yr, because the billionaire proprietor defended his deep cost-cutting measures on the social media platform.
Twitter was beforehand monitoring towards a “negative cash flow situation of $3 billion (nearly Rs. 24, 870 crore) per year” earlier than the price cuts, Musk mentioned on Wednesday whereas talking in a Twitter Spaces audio chat.
Since taking up Twitter on October 27, Musk has laid off 50 % of the corporate’s staff and demanded remaining employees decide to lengthy hours and a “hardcore” tradition, prompting extra worker departures. The controversial strikes have rattled advertisers, who contribute 90 % of Twitter’s income.
“We have an emergency fire drill on our hands,” Musk mentioned. “That’s the reason for my actions.”
Musk mentioned Twitter was beforehand on monitor to spend $5 billion (practically Rs. 41,440 crore) subsequent yr. With $12.5 billion (practically Rs. 1,03,600 crore) in debt as a result of acquisition, Twitter was going through a web money outflow of $6.5 billion (practically Rs. 53,890 crore) with income of about $3 billion subsequent yr. That amounted to detrimental money movement of $3 billion, Musk mentioned.
During the Spaces session, Musk mentioned his “number one priority” was to develop subscriber income so it turns into a significant a part of Twitter’s business, at a time when corporations are chopping their promoting budgets in a weak financial system.
Twitter presently has a bit of over 2,000 staff, Musk added.
Meanwhile, Musk additionally mentioned Tuesday that he would resign as chief government of Twitter as soon as he finds a alternative. His reply got here as obvious response to a ballot he launched that instructed customers needed him to step down.
“I will resign as CEO as soon as I find someone foolish enough to take the job!” Musk tweeted, saying he’ll then solely run software program and server groups at Twitter.
© Thomson Reuters 2022