As he plans to appoint new Twitter CEO, Elon Musk on Wednesday said that through his severe cost cuts, he was able to avert dire finances of the company. According to Bloomberg, the company was about to hit three billion dollars in negative cash flow. Talking to Twitter spaces, a feature on a microblogging platform he bought after his $44 billion deal, Musk said, “Not good since Twitter has $1 billion in cash. That’s why I spent the past five weeks cutting costs like crazy.”
“If… you’re looking at it from my standpoint… basically, you’re in a plane that is headed towards the ground at high speed with the engines on fire and the controls don’t work,” he said.
Musk also said that his strategies are now paying off and that by massive cost cuts and building subscriber revenue, Twitter will be ‘OK’ next year and break even, AFP reported.
Soon after his takeover, Musk fired over 7,000 workers sparking concerns amongst advertisers and netizens that the company is insufficient to carry out the content moderation policies.
The top three officials, including CEO and CFO, were also among the thousands of workers fired.
Musk said that Twitter’s $8 subscription also known as the “Twitter blue” plan would make a difference.
“Because otherwise, how do we pay the fruggin’ server bill,” he said, adding that Twitter’s hardware costs approximately $1.5 billion annually.
This comes after Musk announced that he will resign as Twitter’s CEO and that he is on a hunt to find a someone “foolish” enough to replace him. He said that he will limit his duties to running the software and server teams.
His resignation as CEO comes after a poll on his account where 57 per cent of netizens voted for him to step down.
(with inputs from agencies)
