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Billions of money have been saved.
Bloomberg reiterates the vivid metaphors that Elon Musk used in a recent Twitter Spaces appearance to describe his time as CEO, a depressive compass that he wanted not to leave until finding a successor. In the past five weeks, he said, he has been fighting desperately to reduce the cost of the social network he leads.
Image Source: Reuters.
As far as we can remember, this struggle cost at least half of Twitter’s jobs, and the rest got worse as well as losing out on compensation and even denial of certain staff expenses. According to the server infrastructure administrator at Twitter, this was also a consequence of these measures. This approach has a goal to give Twitter a main income source, but does so unwittingly scare away advertisers, on whom 90% of their revenue is derived.
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In his own words, when the deal was concluded at the end of October, Twitter was moving toward generating 3 billion dollars in annual revenue, just like a half billion dollar debt on its balance sheet. In fact, the company could face a 3 billion negative cash flow that would be hard to complete without a debt obligation. When Musk took action to save money, he believes Twitter is naive to the future of economic progress. At some point, the company reminded him of a plane falling with burning engines and missing control, as he admitted.
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