Twitter Reportedly "Breaking Even" as Advertisers Return, Layoffs Pay Off

Elon Musk, CEO of Twitter Inc, claims that the social media firm is finally seeing the light at the end of the tunnel.

Reuters reports that Musk revealed that Twitter is "roughly breaking even" thanks to the return of most of its advertisers and the success of aggressive cost-cutting efforts that began after a massive layoff in an unexpected interview with the BBC on Wednesday, which was broadcast live on Twitter Spaces.

Recovering from Tough Cost-cutting Measures

Twitter had nearly 8,000 employees before he took over in October. The social media platform now employs approximately 1,500 people. Many engineers responsible for fixing and preventing service outages have been laid off, causing chaos and uncertainty since Musk's $44 billion acquisition.

Many pointed out that Musk's massive 75% layoffs were detrimental to content moderation and the overall operation of the social networking site. As employees who had been fired at the time vented their grievances at Musk, the platform experienced a number of outages.

Despite recent service outages that prevented thousands of Twitter users from accessing links, Musk believes Twitter is on the right track. He acknowledged some glitches, including recent outages, but claimed they were brief.

Twitter Advertisers Are Back

Reuters reports that Musk also claimed that Twitter was previously in a $3 billion negative cash flow situation and had to take drastic measures, such as mass layoffs.

However, he also stated that if all goes well, the company could be cash-flow positive this quarter. Furthermore, he said that Twitter is currently at an all-time high in terms of user numbers.

While Musk's acquisition reduced Twitter's advertising revenue significantly, he recently stated that the majority of the company's advertisers have returned. He attributed the decline to the cyclical nature of advertising spending, some of which was political in nature.

Experts indicated in November 2022 that Elon Musk had already lost half of the top 100 advertisers on Twitter. This comes less than a month after the billionaire bought the platform.

According to a study conducted at the time, these 50 companies have spent approximately $2 billion on Twitter advertisements since 2020. It is also worth noting that these large advertisers who fled Twitter spent more than $750 million on advertising alone in 2022.

Who Is the Next Twitter CEO?

Musk also revealed that he has no one in mind to succeed him as CEO of Twitter. He is under fire from Tesla investors for the amount of time he spends running the social media platform, and he previously stated that the end of this year would be a good time to find a new Twitter CEO.

Twitter has come a long way since Musk's acquisition, with the company now expecting to break even and even become cash-flow positive this quarter.

With the return of the majority of its advertisers and a continued emphasis on cost-cutting, the social media behemoth appears to be on the right track.

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