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Twitter recovers from debts as advertisers return after Elon Musk takeover
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By Nithya Bose in Twitter/X News, posted April 12, 2023
Elon Musk says Twitter is "roughly breaking even," as advertisers have returned and its aggressive cost-cutting efforts have started to yield results.
Speaking to the BBC, owner Elon Musk said his cutting strategy has reduced staffing from around 8,000 to just 1,500.
Musk took over the social media giant last year in a $44 billion buyout.
Since then, Twitter has been engulfed in chaos, as several engineers involved in resolving and preventing service outages were let go.
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Last week, Twitter faced its sixth major outage since the start of the year, when a bug blocked thousands of users from accessing links.
Musk acknowledged certain faults, including recent outages, but said they were short.
He claims Twitter was in a $3 billion negative cash flow crisis, which meant drastic measures like mass layoffs.
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He said: "We could be cash-flow positive this quarter if things go well.”
After his purchase, Twitter saw significant drop in advertising.
Musk explained this was due to the cyclical nature of ad spending, some of which was "political."
On Wednesday, he claimed most of its advertisers had returned.
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The billionaire, who also owns electric vehicle company Tesla and rocket firm SpaceX, said he has no one in mind to succeed him as Twitter CEO.
Musk has come under fire from Tesla investors for the time he spends on the social media platform.
He previously said that finding a new Twitter CEO before the end of this year would be "good timing."
Source: Reuters
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