Elon Musk claims Twitter is set to lose $3 billion if changes aren\u2019t made Wikimedia \/ PixabayTwitter owner and CEO Elon Musk has claimed that the social media platform is set to lose $3 billion in the upcoming financial year, as he continues to defend his cutbacks and sweeping company changes. Ever since Elon Musk acquired Twitter, the social media platform has been mired in controversy. From sweeping layoffs to unpopular policy changes, Musk\u2019s time in charge has been a huge discussion topic online. While he looks set to step down as CEO after being voted out in a public poll, he continues to defend and explain his policy and staff changes. Specifically, he revealed the company\u2019s dire financial situation in a recent Twitter Spaces call, explaining that without major changes it would likely collapse financially. Elon Musk claims Twitter will lose $3 billion without major changes In the Spaces call, shared by @TheSonofWalkley on Twitter, Musk revealed that the platform was on course to lose $3 billion in the calendar year, due to the rising cost of servicing debt with increased interest rates. The monumental financial worries are the reason for his extreme cost-cutting tactics. \u201cBecause of the nature of this transaction,\u201d he explained, \u201cwhere there\u2019s $12.5 billion of debt and the debt rate has been going crazy\u2026 So that\u2019s like a negative cash flow situation of like $3 billion a year. That\u2019s not good, [especially] since Twitter has $1 billion in cash. So that\u2019s why I\u2019ve spent the last five weeks cutting costs like crazy.\u201d He went on to explain that they are looking to increase Twitter\u2019s revenue via new subscription models and advertiser improvements. As a result, he reckons the platform will be \u201cokay\u201d financially. \u201cI now think that Twitter will in fact be okay next year,\u201d he stated. \u201cI think we will be sort of roughly cash flow break even. That\u2019s what I hope for next year\u2026 as opposed to minus $3 billion ish\u2026 [My actions] may seem sometimes spurious or odd. It\u2019s because we have an emergency fire drill on our hands, not because I\u2019m naturally capricious.\u201d Despite Musk\u2019s adamant defense of his policy, discussion over the platform\u2019s direction is sure to drag on.<\/p>\n","protected":false},"excerpt":{"rendered":"
Elon Musk claims Twitter is set to lose $3 billion if changes aren\u2019t made Wikimedia \/ PixabayTwitter owner and CEO Elon Musk has claimed that the social media platform is set to lose $3 billion in the upcoming financial year, as he continues to defend his cutbacks and sweeping company changes. Ever since Elon Musk […]<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-47997","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/dejan.au\/index.php\/wp-json\/wp\/v2\/posts\/47997","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dejan.au\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dejan.au\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dejan.au\/index.php\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/dejan.au\/index.php\/wp-json\/wp\/v2\/comments?post=47997"}],"version-history":[{"count":0,"href":"https:\/\/dejan.au\/index.php\/wp-json\/wp\/v2\/posts\/47997\/revisions"}],"wp:attachment":[{"href":"https:\/\/dejan.au\/index.php\/wp-json\/wp\/v2\/media?parent=47997"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dejan.au\/index.php\/wp-json\/wp\/v2\/categories?post=47997"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dejan.au\/index.php\/wp-json\/wp\/v2\/tags?post=47997"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}