Twitter CEO Elon Musk stated on Wednesday that the social media business is “basically breaking even,” as most of its advertisers have returned and the company’s aggressive cost-cutting initiatives have begun to bear fruit following significant layoffs.
Musk stated in an interview with BBC streamed live on Twitter Spaces that Twitter now has roughly 1,500 employees, down from “just under 8,000” before he took charge in October.
Twitter has been characterised by instability and uncertainty since Musk’s $44 billion takeover, with several engineers responsible for addressing and preventing service failures laid off, according to Reuters.
According to internet watchdog group NetBlocks, Twitter experienced its sixth major outage since the beginning of the year last week when a problem blocked thousands of users from accessing links.
Musk admitted certain errors, including recent outages, but claimed they were brief.
He claimed Twitter was in a $3 billion negative cash flow crisis and needed to take severe measures, referring to the company’s mass layoffs.
“We could be cash-flow positive this quarter if things go well,” he said in the interview that attracted more than 3 million listeners, adding the company currently has all-time high user numbers.
Since his takeover, Twitter has seen a significant drop in advertising revenue.
Musk explained that this was due to the cyclical nature of advertising spending, some of which was “political.” On Wednesday, he stated that the majority of its advertising had returned.
The billionaire, who also owns Tesla and SpaceX, has stated that he has no plans to appoint someone to succeed him as Twitter CEO.
Musk has come under fire from Tesla shareholders for the amount of time he spends running the social media site, and he has stated that finding a new Twitter CEO would be “excellent timing” at the end of this year.
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