The Blubber

Per Reuters

Elon Musk is projecting Twitter to reach cash flow break even by the end of next year. This statement comes after the CEO repetitively said that the company was in a dire financial situation and headed to bankruptcy.

Musk also defended his decision to lay off staff along with other cost-cutting measures as he described how the company was in a negative cash flow situation. The billionaire shared that the social platform was headed towards losing $3 billion a year if he did not make his moves, per FT, which also reported his statement.

Musk: "We have an emergency fire drill on our hands... This company is like you're in a plane that is headed towards the ground and high speed with the engines on fire and the controls don't work."

The Twitter CEO explained to reason why his actions were, in his words, "spurious." Musk said that the company was poised towards spending $5 billion in 2023 after spending $5.6 billion in 2021, which resulted in a net loss of $211 million during that year.

Musk said that the company only had $1 billion in cash despite his $44 billion acquisition which led him to spend the last five weeks on what some would describe as drastic cost-cutting measures. So far, the Twitter CEO has fired 7,500 employees.

The Twitter CEO also shared how his actions could potentially gear the social platform to at least break even in 2023. He has also revealed his plans of making the social platform an all-in-one app with different features like sending funds or shopping.

Musk: “With the changes we are making here on massively reducing the burn rate, and building subscriber revenue, I now think that Twitter will, in fact, be okay next year,”

The Twitter CEO also recently held a poll asking the public if he should quit and that he would abide with the results of the poll. Although Musk hasn't stepped down, he noted that he would resign as soon as he found someone he described as "foolish enough to take the job."

Resources:

Reuters

Financial Times

@elonmusk