Shulou(Shulou.com)11/24 Report--

Thanks to CTOnews.com netizen Brother Black fly's left hand clue delivery! According to news in the morning of December 22, Beijing time, Elon Musk (Elon Musk) reportedly revealed that the company's cash flow was about to turn to-$3 billion before he joined Twitter and curbed losses through massive layoffs.

"that's why I've been cutting costs like crazy over the past five weeks." "the company was like an uncontrolled plane with a burning engine, crashing to the ground at high speed," Musk said at a Twitter Spaces event late Tuesday.

Musk bought Twitter for $44 billion in October, partly financed by $13 billion in debt and about $1.5 billion in annual interest. Since then, he has been frantically reinventing the social media platform. In early November, he even said Twitter was at risk of bankruptcy, losing $4 million a day. Under Musk's personal leadership, 5000 of the company's 7500 employees were laid off, while the rest faced a "hard core" work environment.

Musk conducted a grass-roots poll on Twitter over the weekend, asking people if they wanted him to resign from Twitter CEO. The results showed that about 58% of the respondents gave a "yes" answer, and Musk later confirmed that once he found a suitable successor, he would leave the job that the "fool" would do.

Musk described a terrible financial picture on Twitter Spaces, but he said the total collapse had been brought under control.

According to the recently released annual report, the total cost of Twitter in 2021 is about $5.6 billion. Musk says the company will spend about $5 billion next year. Given the debt costs of the acquisition, Twitter could spend about $6.5 billion next year, prompting Mr Musk to cut costs aggressively.

He said that as things stand, Twitter is expected to generate about $3 billion in revenue in 2023 and has about $1 billion in cash on its balance sheet. It is about $2 billion less than the $5.1 billion in revenue in 2021. On average, analysts had expected revenue in 2022 to be about the same as in 2021.

"I think there should be no problem with Twitter next year." Musk said he expected the company to "basically" break even with cash flow. But he also admitted that "it will be very difficult." Musk added that advertisers, Twitter's biggest source of revenue, have been asking "rational" but "harsh" questions.

Musk has also been tweaking the social media platform, hoping to increase the amount and diversity of revenue, including a $8-a-month fee for the subscription service Twitter Blue. It is reported that as of mid-November, the service had about 140000 paying subscribers.

Twitter has struggled to generate revenue through user-to-user communication, but with Musk's series of eye-catching actions, the platform has maintained a lively atmosphere.

As Musk tried to reverse the Twitter plane that rushed to the ground, the share price of his other company, Tesla, came under pressure. This is partly because investors worry that Mr Musk is distracted by Twitter and will not be able to focus on the electric car maker. Musk has also sold billions of dollars worth of Tesla shares in the past two months. Investors worry that Musk may be trying to provide financial support for Twitter and reduce the debt burden.

Tesla shares fell 0.17% to close at $137.57 in regular trading on the Nasdaq on Wednesday. The stock has fallen about 61% so far this year.

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