Twitter CEO Elon Musk confirmed that the company has almost managed to break even with cash flow, with most of its advertisers returning, and aggressive cost-cutting efforts beginning to bear fruit after mass layoffs.
The cash flow break-even point is the point at which a company's cash flow from operations equals its cash flow from financing and investing activities.
The billionaire Musk said, in a live broadcast conducted by the BBC via the Twitter Spaces, that the company now has about 1,500 employees, which represents a sharp decrease from “just under 8,000” before it became “. Twitter » belongs to Mask.
Since Musk completed his acquisition of Twitter at the end of last October for $ 44 billion, the company has suffered from a state of chaos and uncertainty, especially after the layoffs of many engineers responsible for fixing and preventing service outages.
Last week, Twitter suffered a bug that prevented thousands of users from accessing links, its sixth major outage since the start of the year, according to internet watchdog group NetBlocks.
Musk acknowledged some glitches, including the recent outages, but said they were short-lived.
Musk reiterated that prior to the cost-cutting efforts, Twitter was heading toward a "negative cash flow situation of $3 billion annually" and he had to take drastic action, referring to his widespread layoffs.
“It could be cash flow positive this quarter if all goes well,” Musk said in the interview, which was watched by more than 3 million listeners, adding that the company currently has the highest user numbers ever.
The billionaire, who also runs electric car maker Tesla and aerospace company SpaceX, said he was not considering anyone to replace him as CEO of Twitter.
Musk has faced scrutiny from Tesla investors over the amount of time he spends running the social media platform, and had previously said that the end of this year would be a "good time" to find a new CEO for Twitter.
During the interview, Musk stated that he did not acquire Twitter out of pure revenue, especially after he retracted his desire to buy it. He said he thought the court would force him to do so, so his lawyers advised him to go through with the deal.
Okaz (Jeddah)