The arrival of Elon Musk a Twitter is one of the main technology news in 2022. The tycoon generated a revolution in the company, both internally and externally, and for him he had only one goal: to save the platform.
According to Musk, all the spending cuts were necessary to avoid a $3 billion deficit.
The also head of Tesla and SpaceX spoke in a Twitter Spaces this Thursday about the measures, notes Reuters. The company was heading for a “$3 billion per year negative cash flow situation. We have a fire drill on our hands. That is the reason for my actions.”
“This company is like, basically, You were in an airplane heading towards the ground at high speed with the engines on fire and the controls not working. That’s why I spent the last five weeks cutting costs like crazy.”
According to Musk, Twitter was on track to spend $5 billion due to the acquisition, facing a net cash outflow of $6.5 billion.
The changes of Twitter under the command of Elon Musk
Musk fired all the former executives and almost half the staff, which was left with just over 2,000 employees. It also changed the parameters for granting the verification badge, with the payment of 8 dollars per month.
In addition, it unblocked accounts of people banned by the old administration, such as former President Donald Trump and his many followers.
The changes have raised questions among investors and advertisers, many of them avoiding showing themselves as part of the new face of Twitter.
The South African paid, in October of this year, $44 billion for the company then run by Parag Agrawal.
Elon Musk and the Tesla situation
On Twitter Spaces this week, Musk also spoke about the situation at another of his companies, Tesla. the tycoon recently sold $3.6 billion worth of electric vehicle company stock, but he said he won’t get out of them for about two years.
“I won’t sell any more shares for, I don’t know, probably two years from now. Definitely not next year, under any circumstances, and probably not next year either,” she said, according to The Guardian.
Tesla shares rose 3% to $129.23 in after-hours trading Thursday, after an 8.9% drop in normal trading hours.
