(The Herald Post) – Twitter CEO Elon Musk revealed in a recent live interview with BBC, broadcasted on Twitter Spaces, that the social media giant is on the verge of breaking even, despite massive layoffs, service outages, and declining ad revenue. Musk attributes this turnaround to aggressive cost-cutting measures and the return of most advertisers.
The billionaire entrepreneur, who also leads Tesla and SpaceX, explained that Twitter’s workforce has been reduced to around 1,500 employees, a significant drop from the nearly 8,000 staff members it had before his acquisition of the company in October. The layoffs included many engineers responsible for maintaining and fixing service issues, which contributed to the platform’s sixth major outage this year, as reported by internet watchdog group NetBlocks.
Musk acknowledged the outages but stated they have been short-lived. He also shared that the company was in a dire financial situation with a $3 billion negative cash flow, necessitating the drastic layoffs. However, Musk remains optimistic, saying that Twitter could become cash-flow positive this quarter if all goes well, and highlighting that the platform currently has all-time high user numbers.
Following his acquisition, Twitter experienced a massive decline in advertising revenue, which Musk attributed to the cyclical nature of ad spending and political factors. However, he confirmed that most of the company’s advertisers have since returned.
As for the future of Twitter, Musk admitted he has not yet identified a successor for the CEO position. He has faced criticism from Tesla investors for the time he spends managing the social media platform and has previously stated that the end of this year would be an ideal time to find a new Twitter CEO.