Elon Musk says he saved Twitter from a $3 billion shortfall in its budget after he laid off half of the company’s staff and cut down costs.
Elon Musk says he saved Twitter by $3 billion shortfall with cost-cuts
“That is why I spent the last five weeks cutting costs like crazy,” Musk told Twitter users who logged in to a Twitter Spaces voice chat on Tuesday.
“This company is like, basically, you are in a plane that is headed toward the ground at high speed with the engines on fire and the controls don’t work,” the Tesla CEO added.
Late in October, Musk used $13 billion in debt to finalize his $44 billion acquisition of Twitter. Around $1.5 billion in annual interest payments are the responsibility of the Twitter CEO.
“If you didn’t make any changes” Twitter’s net cash outflow would be much more than $6.5 billion the following year, Musk stated.
Musk predicted that Twitter was on course to achieve about $3 billion in revenue and have about $1 billion in cash.
“I now think that Twitter will, in fact, be okay next year,” Musk said. He added on that he wishes Twitter to “roughly” break even if it is on cash flow.
Additionally, Musk said that advertisers were posing “sane” yet “tough” queries regarding the likelihood of a return on their investments.
Before being acquired by Musk and turned private, analysts had predicted that Twitter will make around $5.2 billion in revenue in the fiscal year 2022, according to Bloomberg.
Musk says he would step down if someone ‘foolish enough’ takes the job
Musk declared that once “someone foolish enough” could be chosen to replace him, he would ultimately step down as Twitter’s CEO.
He promised to heed the findings of a Twitter poll in which his well over 122 million followers were asked whether he should remain CEO.
“I will resign as CEO as soon as I find someone foolish enough to take the job!” Musk tweeted to his fans on Tuesday after the majority of his supporters decided that he should resign.
“No one wants the job who can actually keep Twitter alive. There is no successor,” he tweeted.
