[Asia Economy Reporter Yujin Cho] Twitter, once on the brink of bankruptcy, is reportedly approaching its break-even point, according to Elon Musk, Twitter's Chief Executive Officer (CEO).
On the 5th (local time), Musk posted on his Twitter, "The past three months spent saving Twitter from bankruptcy while carrying out missions at Tesla and SpaceX have been extremely challenging." He added, "Twitter still faces many difficulties," but said, "Twitter is now heading toward the break-even point."
Musk wrote, "No one wants to endure such (bankruptcy) pain," and expressed gratitude for the support from many. However, he did not disclose specific figures showing improvements in Twitter's revenue.
As of the 3rd, it has been over 100 days since Musk's acquisition of Twitter, but management chaos continues. Immediately after acquiring Twitter for $44 billion in October last year, Musk fired the top executives who clashed during the acquisition process and dissolved the board of directors.
Subsequently, to reduce costs, about 80% of the entire workforce (7,500 employees) was laid off, and efforts were made to drive changes in the business model, including the introduction of paid models. However, controversies have persisted due to workforce gaps caused by employee dismissals and impulsive management styles.
In particular, as Musk exercised enormous control over company operations by suspending accounts of journalists critical of him and restoring accounts of far-right figures, owner risk became prominent, leading to the departure of more than 500 advertisers.
Due to advertisers halting spending, advertising revenue, which accounts for the majority of total revenue, is reported to have decreased by 40-70% compared to a year ago.
In a conference call with employees in November last year, Musk mentioned that Twitter's cash flow was poor and that bankruptcy could not be ruled out.
In fact, Twitter was sued by the landlord for unpaid rent on its San Francisco headquarters office, and to secure operating funds, it put office supplies that were no longer needed after workforce restructuring up for online auction.
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