Musk facing financial difficulty managing Twitter

Elon Musk has defended his extreme cost cutting measures. In one of his late night Twitter Spaces he called cost cutting necessary else the company would have to file for bankruptcy.

New Delhi, Jan 4: The 44 billion dollar Twitter buyout seems to have impacted Elon Musk quite badly. Once the richest man on the earth is no longer the richest as the value of his company Tesla has declined by half in one year's time. Nonetheless, even the Twitter affair is not going well. There are news stories that the company is failing even to pay rents for various offices.

To meet the ends, Twitter head Elon Musk has started head cutting and reducing unnecessary expenses. It's not that these are his doings but Twitter has been a loss making entity for a decade. The woke work culture produced little and ate a lot. Therefore, the recent retrenchments and firings have been quite necessary to make the organization lean.

Needless to say, even Elon Musk has defended his extreme cost cutting measures. In one of his late night Twitter Spaces he called cost cutting necessary else the company would have to file for bankruptcy.

Twitter is like a plane headed to the ground

Yes, these are the exact words from Elon Musk. Interestingly, it's also true that Elon Musk is the best thing that could happen to Twitter as the company with the current financials could not last for long. There were a lot of issues and several decisions that were not making business sense. The woke work culture was another ailment that ruined the financials.

Nonetheless, Musk's Twitter has also started selling off the unnecessary furniture items and kitchen equipment which have been left behind by the ex-employees. Interestingly enough there were more than 7,500 full-time workers around the world. However, the numbers have now been reduced quite significantly.

The CEO who works on the floor

The maverick CEO of Twitter, Elon Musk has been quintessentially a worker in the recent weeks for Twitter. He used to sleep in the Twitter office, ate dinner and held late night meetings with the development team. He showed Twitter how to work with a lesser number of people. He cut down the headcounts significantly for a lean and effective team.

In one of his meetings he said that he spent the month cutting costs like crazy. He also tried to build a stronger paid subscription service so that Twitter survives. According to Musk with the way Twitter was being run there possibly will be operational difficulty as there could be $3 billion in negative cash flow next year.