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Elon Musk described the previous three months as “very stressful” as he struggled to operate his other businesses, Tesla and SpaceX, as well as “rescue Twitter from bankruptcy.”
Following previous warnings about Twitter’s precarious financial situation since he purchased the faltering social media firm $44 billion last October, the billionaire came clean with his admission.
Regarding the challenging stretch, Musk wrote on Sunday, “Wouldn’t wish such agony on anyone.”
Twitter still has difficulties, but if we keep up our efforts, we should soon break even. We greatly appreciate the support of the public, he continued.
In a different tweet, Musk moderated his upbeat prediction by stating that, while Twitter is “certainly not financially healthy yet,” it is “trending to be so” in the future.
There was still much work to be done, he noted.
According to tech news website Platformer, Twitter’s daily income decreased 40% last month compared to January 2022 as several of the company’s biggest advertisers withdrew or reduced spending. According to estimates, Twitter’s ad income decreased by as much as 70% in December of last year, according to Reuters.
Musk told Twitter employees in a meeting in November of last year that the firm would file for bankruptcy if it did not make up a revenue gap. In the same month, Musk claimed that Twitter was losing $4 million daily due to a “huge decline in income” brought on by the departure of significant advertisers.
In an effort to increase money, Twitter has subsequently launched an updated version of its “Blue” membership service, under which users may pay $8 per month for account verification and other benefits.
In a campaign that includes rounds of layoffs and a reduction in everything from office amenities to housekeeping services at the company’s San Francisco headquarters, Musk also ordered Twitter to implement significant cost-cutting measures. The surviving staff at Twitter had to “opt in” to a “hardcore” workplace culture or quit their jobs.
Musk has acknowledged that the hunt for his replacement as CEO of Twitter is already underway, but he hasn’t given a specific date for when he would stand down.
In addition to his duties at Twitter, Musk recently received a call to testify as a pivotal witness in a case involving Tesla shareholders. The shareholders argued that Musk’s tweet from 2018—in which he said he had “funding secured” to take Tesla private—was to blame for their steep losses when the transaction never happened.
Last Friday, a San Francisco jury found in Musk’s favor, saying that he was not responsible for deceiving investors with the 2018 tweet.
Musk became the first individual ever to lose $200 billion in personal fortune last year. His decline was triggered by his pricey Twitter transaction as well as a rapid decline in Tesla shares during a significant selloff in the tech industry.
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