Elon Musk Says Twitter on Track to Be “Roughly Cash Flow Break-Even” in 2023

Elon Musk stated Twitter is now on observe 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 fee cuts, Musk stated 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 workers 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 stated. “That’s the reason for my actions.”

Musk stated Twitter was beforehand on observe to spend $5 billion (practically Rs. 41,440 crore) subsequent yr. With $12.5 billion (practically Rs. 1,03,600 crore) in debt because of the acquisition, Twitter was going through a internet money outflow of $6.5 billion (practically Rs. 53,890 crore) with income of about $3 billion subsequent yr. That amounted to damaging money circulation of $3 billion, Musk stated.

During the Spaces session, Musk stated his “number one priority” was to develop subscriber income so it turns into a significant a part of Twitter’s enterprise, at a time when corporations are chopping their promoting budgets in a weak financial system.

Twitter at the moment has somewhat over 2,000 staff, Musk added.

Meanwhile, Musk additionally stated 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 advised customers wished 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