January 29, 2023

Juan Kabayan

All the News All the Time

Musk says ‘crazy’ cost cuts have saved Twitter

(FILES) In this file photo taken on October 4, 2022, a phone screen displays a photo of Elon Musk with the Twitter logo shown in the background, in Washington, DC. – Elon Musk late Tuesday said he will resign as chief executive of Twitter once he finds a replacement, in apparent respect of a poll he himself launched that revealed users wanted him to step down.
“I will resign as CEO as soon as I find someone foolish enough to take the job!” Musk tweeted, saying he will then run software and server teams at Twitter. (Photo by OLIVIER DOULIERY / AFP)

The mercurial billionaire told a live chat forum that without the changes, including firing over half of Twitter’s employees, the company would have bled $3 billion dollars a year.

“Not good since Twitter has $1 billion in cash. That’s why I spent the past five weeks cutting costs like crazy,” he told Twitter Spaces, a feature of the platform he bought for $44 billion.

“If… you’re looking at it from my standpoint… basically, you’re in a plane that is headed towards the ground at high speed with the engines on fire and the controls don’t work,” he said.

Just weeks into his ownership of Twitter, Musk fired about half of its 7,500-strong workforce, sparking concern that the company was insufficiently staffed to carry out content moderation and spooking governments and advertisers.

Musk said that his strategy was paying off and that by massively reducing costs and building subscriber revenue, “I now think that Twitter will in fact be OK next year” and break even.

He added that he understood that advertisers were skittish over spending on his platform, but blamed their caution on the souring economic outlook and not worries about content moderation.

He said the new $8 subscription service called Twitter Blue would help make up the difference.

“Because otherwise, how do we pay the fruggin’ server bill,” Musk said, adding that Twitter’s hardware costs around $1.5 billion annually.

Musk made the defense of his policies after he tweeted that he was on the hunt for a new CEO “foolish” enough to replace him.

He said he would then limit his duties to running the software and server teams at Twitter.

This followed a Twitter poll in which Musk asked users whether he should stay on as the company’s CEO — 57 percent of votes said he should step down.

Musk has used the Twitter polls to make other decisions on the platform, including the reinstatement of the account of former US president Donald Trump.