Elon Musk, CEO of Twitter Inc., revealed in a recent interview with BBC that the social media platform is approaching a break-even point, as the majority of its advertisers have returned and cost-cutting efforts have started to pay off following significant layoffs. The interview, broadcast live on Twitter Spaces, attracted more than 3 million listeners.
Musk shared that Twitter's workforce now comprises approximately 1,500 employees, a dramatic drop from the nearly 8,000 staff members the company had before Musk's takeover in October. However, this substantial reduction in workforce has also led to the loss of many engineers responsible for addressing and preventing service outages, according to sources who spoke with Reuters.
In the past week, Twitter experienced a bug that blocked thousands of users from accessing links, marking the platform's sixth major outage since the start of the year, as reported by internet watchdog group NetBlocks. Musk acknowledged these recent glitches, including outages, but noted they were short-lived.
Musk explained that Twitter was dealing with a $3 billion negative cash flow situation, which necessitated drastic measures like extensive layoffs. He expressed optimism about the company's financial future, stating, "We could be cash-flow positive this quarter if things go well." Musk also mentioned that Twitter currently has record-high user numbers.
Since Musk's $44 billion acquisition of Twitter, the platform has experienced a substantial decline in advertising. Musk previously attributed this decrease to the cyclical nature of ad spending and political factors. However, he revealed in the interview that most advertisers have now returned to the platform.
As the founder and leader of electric car manufacturer Tesla and aerospace company SpaceX, Musk has faced concerns from Tesla investors about the time he devotes to running Twitter. He previously mentioned that the end of this year might be an appropriate time to find a new CEO for the social media company, though he currently has no specific successor in mind.
