It’s been a tough year for the Twitter app and that’s ever since billionaire Elon Musk acquired the firm for a staggering value of $44 billion.
The new Twitter chief came in with plenty of aspirations but very little has worked in terms of saving the app from falling into a scenario that’s nothing less than chaos and uncertainty.
Recently, the billionaire was seen shedding light on the financial crisis that Twitter is forced to go through at the moment. He compared it to a crashing plane whose engines were on fire. And many couldn’t help but agree with the Tesla CEO this time.
Musk was put in the spotlight and asked to share his rationale behind all the abrupt decision-making he went along with. From mass layoffs to reducing cuts in so many other ways, he really had plenty of explaining to do.
He stated that the plane in this case was Twitter which was doomed, to begin with. It was flying at high speeds with engines on fire and the controls just didn’t work.
As mentioned by the Financial Times broke the report of Musk’s interview first, he acknowledged that his decisions may appear to be a little bizarre to many. But he added that the reason was related to having emergency fire drills on our hands and not due to the fact that he’s wacky or wishes to make such calls.
At the moment, Twitter’s CEO is on the verge of finding a new replacement. The news comes after he was asked to step down by more than 50% of Twitter users. Musk added how the platform was functioning on the track of having negative cash flow that totaled $3 billion by the next year.
The firm is all set to make a staggering revenue of $3 billion by 2023 and during that time, he expects total cash flows to be nearly $6.5 billion. As revealed in the annual report, the firm set out revenue of nearly $5 billion and costs were up to $5.6 billion. And that made a net loss of nearly $221,000.
Twitter’s financial crisis has been affected and that’s linked to how the firm ended up taking a debt of $12 billion after making such a purchase. This debt has service costs that total $1.5 billion. And the expenses continue to increase because rates of interest are going up the walls like crazy.
But Musk is yet to lose hope. He knows the company will end up breaking even by next year in terms of cash flow. He similarly mentioned how this firm would really be dead if he had not made such changes.
The number of staff has really fallen down from 7000 to a mere 2300, ever since Elon Musk opted to take over. As reported by The New York Times, Twitter had even put an end rent payments at the office. It was not even going to set out payments for $200,000 in regard to expenses for private flights through a jet.
In this Twitter Space, Musk was seen speaking about meetings with different advertisers and had to explain how hard questions were thrown his way about returns on investment due to a decline in the current macroeconomic situation.
It’s interesting how the results of the Twitter poll want Musk to step down as CEO as soon as possible as they feel he’s not right for the job. This is just after the billionaire posted an image with the firm’s leading shareholder which is Qatar Investment Authority. They reportedly have a $375 million share in the firm.
Read next: Twitter Drops Support For Two-Factor Authentication Texts Using Google Voice Numbers
The new Twitter chief came in with plenty of aspirations but very little has worked in terms of saving the app from falling into a scenario that’s nothing less than chaos and uncertainty.
Recently, the billionaire was seen shedding light on the financial crisis that Twitter is forced to go through at the moment. He compared it to a crashing plane whose engines were on fire. And many couldn’t help but agree with the Tesla CEO this time.
Musk was put in the spotlight and asked to share his rationale behind all the abrupt decision-making he went along with. From mass layoffs to reducing cuts in so many other ways, he really had plenty of explaining to do.
He stated that the plane in this case was Twitter which was doomed, to begin with. It was flying at high speeds with engines on fire and the controls just didn’t work.
As mentioned by the Financial Times broke the report of Musk’s interview first, he acknowledged that his decisions may appear to be a little bizarre to many. But he added that the reason was related to having emergency fire drills on our hands and not due to the fact that he’s wacky or wishes to make such calls.
At the moment, Twitter’s CEO is on the verge of finding a new replacement. The news comes after he was asked to step down by more than 50% of Twitter users. Musk added how the platform was functioning on the track of having negative cash flow that totaled $3 billion by the next year.
The firm is all set to make a staggering revenue of $3 billion by 2023 and during that time, he expects total cash flows to be nearly $6.5 billion. As revealed in the annual report, the firm set out revenue of nearly $5 billion and costs were up to $5.6 billion. And that made a net loss of nearly $221,000.
Twitter’s financial crisis has been affected and that’s linked to how the firm ended up taking a debt of $12 billion after making such a purchase. This debt has service costs that total $1.5 billion. And the expenses continue to increase because rates of interest are going up the walls like crazy.
But Musk is yet to lose hope. He knows the company will end up breaking even by next year in terms of cash flow. He similarly mentioned how this firm would really be dead if he had not made such changes.
The number of staff has really fallen down from 7000 to a mere 2300, ever since Elon Musk opted to take over. As reported by The New York Times, Twitter had even put an end rent payments at the office. It was not even going to set out payments for $200,000 in regard to expenses for private flights through a jet.
In this Twitter Space, Musk was seen speaking about meetings with different advertisers and had to explain how hard questions were thrown his way about returns on investment due to a decline in the current macroeconomic situation.
It’s interesting how the results of the Twitter poll want Musk to step down as CEO as soon as possible as they feel he’s not right for the job. This is just after the billionaire posted an image with the firm’s leading shareholder which is Qatar Investment Authority. They reportedly have a $375 million share in the firm.
Read next: Twitter Drops Support For Two-Factor Authentication Texts Using Google Voice Numbers
