Elon Musk, CEO of Twitter Inc, announced on Wednesday that the social media platform is “essentially breaking even,” thanks to the return of most of its advertisers and the success of Twitter’s strong cost-cutting measures following widespread layoffs. In an interview with the BBC that was broadcast live on Twitter Spaces, Musk stated that Twitter now has approximately 1,500 employees, a significant decrease from “just under 8,000 staff members” before he assumed control in October.
Sources tell Reuters that since Musk paid $44 billion to acquire Twitter, the company has been characterized by instability and uncertainty, with many engineers responsible for addressing and avoiding service disruptions being let go.
According to NetBlocks, Twitter has had six significant outages this year, the most recent one preventing thousands of users from accessing links last week.
Musk said there had been issues, including recent outages and regarding the employees, but claimed they were temporary.
He claims that Twitter’s massive layoffs were necessary since the company was in a negative cash flow condition of $3 billion.
More than three million people listened to his interview, and he mentioned that the firm is seeing record-breaking user growth and that they may become cash flow positive this quarter.
After his purchase, Twitter’s advertising revenue plummeted.
Musk claimed that this was because advertising budgets fluctuate and that some of this fluctuation was “political.” The majority of its sponsors, he added on Wednesday, have come back.
The billionaire claimed he hasn’t given any thought to who should take over as Twitter CEO, despite the fact that he also oversees electric car manufacturer Tesla and rocket business SpaceX.
Tesla investors have questioned Musk’s dedication to Twitter, and he has previously stated that the end of this year would be “excellent timing” to recruit a replacement CEO.