According to his own words, not the most popular measures, such as reducing the workforce by almost three times after the purchase of Twitter by Elon Musk, made it possible to significantly reduce costs in the end, otherwise the current year would have ended with a negative cash flow of $3 billion. Next year, according to Musk, Twitter should at least break even.
“I’ve been saving like crazy on expenses for the last five weeks” — admitted Elon Musk during a podcast on Twitter Spaces. He further compared the company to “an airplane hurtling to the ground with its engines on fire and its controls inoperable”. As the current Twitter boss added in late October when he bought the company, it should bring in $3 billion in revenue and end the year with $1 billion in free cash on the balance sheet. Now he’s convinced Twitter will be fine next year and she can avoid negative cash flows. Advertisers are asking reasonable but tough questions about their return to market, Musk said.
Estimated Bloomberg, before Elon Musk bought Twitter, the company had every shot at ending fiscal 2022 with $5.2 billion in revenue. Now, the company’s principal owner believes the company could have been $3 billion in the red at the cash flow level by the end of the year if it hadn’t implemented cost-cutting measures after purchasing assets in late October. The total amount of the transaction was estimated at $44 billion, with $13 billion in debt obligations according to the results posted directly to Twitter, and in the coming year alone, it had to pay $1.5 billion to creditors numbers. Musk did not explain what role the December sale played in reclaiming Twitter Tesla shares he owned for a total of $3.6 billion. We recall that Elon Musk expressed his willingness today brought to comply with the decision of social network users to give up the post of CEO, but promised first to find a successor and then to retain control of the software and server areas of Twitter’s business.