Webdesk: As Twitter rapidly cuts costs, CEO Elon Musk claimed on Tuesday that the firm had “a shot” at being cash flow-positive next quarter.
At a webcast Morgan Stanley investor conference, Musk claimed it was “startling” how poorly Twitter made money off its messaging service.
Musk said the business trimmed its non-debt expenses to $1.5 billion from an anticipated $4.5 billion in 2023 by 40% lowering its cloud services cost and eliminating one data centre. Twitter fired thousands.
In October, Musk bought Twitter for $44 billion. Musk claimed the take-private loan will cost the company $1.5 billion in annual interest payments.
He stated Twitter’s “huge fall in advertising” was “political” and “cyclical.”
Twitter has been in disarray since Musk’s takeover. NetBlocks reported its sixth big outage of the year on Monday, when a problem blocked thousands of customers from accessing links.
Musk called Monday’s downtime a “catastrophic” modification. He noted that developers were “cleaning up” Twitter software code in general.
Since the Musk transaction, Twitter’s stability is questioned. Reuters sources said several engineers who fixed and prevented service failures left.
The billionaire expected Twitter’s executive team to take years to create. Musk recently stated the end of the year would be “excellent timing” to choose a new CEO.
He also claimed he wants Twitter users to be able to send money with one click.
“I believe we can become the world’s largest financial institution,” he remarked.
He added that the business wants to make platform ads more relevant. Twitter has lost sponsors owing to Musk’s “free speech absolutist” content management strategy.
EU Officials
The Financial Times reported on Tuesday that EU officials instructed Musk to hire additional Twitter content moderators to comply with an imminent rule.
Musk stated at Tuesday’s Morgan Stanley presentation that Democrats and Republicans trust Twitter equally. A webcast presentation showed 253 million “monetizable” daily active users on the site in the fourth quarter.
Musk said Twitter generates 5 to 6 cents per hour with users spending “130 million hours each day” on the platform. He suggested 15–20 cents.
