Elon Musk talks Twitter financials, says his moves averted $3B shortfall

T3 Trading Group chief strategist Scott Redler and Sarge986 president Stephen Guilfoyle join ‘The Claman Countdown’ to reveal what blue-chip stocks they’re buying as the bear market persists. Twitter owner and CEO Elon Musk is defending the major changes he’s made at the platform since taking it over, saying they were aimed at turning around a significant revenue shortfall at the social media giant. Musk said during a Twitter Spaces chat Wednesday that the company was headed for a “negative cash flow situation of $3 billion a year” when he took the helm, explaining, “So that’s why I spent the last five weeks cutting costs like crazy.” Elon Musk immediately began slashing Twitter’s workforce after he purchased the company in late October. (AP Photo/Jae C. Hong, File / AP Newsroom) The billionaire, who also heads electric vehicle behemoth Tesla, immediately began slashing Twitter’s workforce after he purchased the company in late October. Within weeks, roughly two-thirds of the platform’s original 7,500 employees were out of a job. , Musk has made a number of moves aimed at increasing revenue, such as charging for verification for users. Elon Musk believes Twitter should be back on track financially in 2023. (Nathan Stirk/Getty Images / Getty Images)The new Twitter owner acknowledged that his actions “may seem sometimes spurious or odd or whatever,” but he said they were necessary because ” we have an emergency fire drill on our hands. . From his standpoint, he said, it was like being “in a plane that is headed towards the ground at high speed with the engine on fire and the controls don’t work.” Twitter owner Elon Musk has made significant changes to the platform since taking over last month. (Omar Marques/SOPA Images/LightRocket via Getty Images / Getty Images) reducing the burn rate and building subscriber revenue, I now think that Twitter will, in fact, be OK next year,” Musk said during the Spaces discussion. “I think we will be… roughly cash-flow break-even — that’s what I expect for next year.” Musk said earlier this week that he will resign as CEO of Twitter as soon as he finds a replacement, after Twitter users voted in a poll for him to step down. Reuters contributed to this report.

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