Mashable: While defending his drastic cost-cutting tactics at Twitter, billionaire owner Elon Musk said the social media network is on track to reach "approximately cash flow break-even" next year.

Elon Musk said that his decision to lay off a lot of people at Twitter in the days and weeks after he bought the company was like a plane crash when he was asked about it.

Musk said in a Twitter Space late Tuesday night, "This company is like being on a plane that's headed towards the ground at high speed, with the engines on fire, and the controls not working."

While defending his drastic cost-cutting tactics at Twitter, billionaire owner Elon Musk said the social media network is on track to reach "approximately cash flow break-even" next year.

According to a report by Economic Times, before the expense cuts, Musk said in a Twitter Spaces audio chat on Wednesday that Twitter was headed toward a "negative cash flow situation of $3 billion per year."

Since seizing control of Twitter on October 27th, Musk has fired half of the company's workforce and insisted that the surviving employees adopt a "hardcore" work ethic and schedule. Since advertisers pay for 90% of Twitter's operations, it makes sense that they are worried about the recent changes.

"There is a fire drill in progress," Musk stated. That's why I've done what I've done.

Musk claimed on Wednesday that Twitter now employs just over 2,000 people. He claims that Twitter had planned to invest $5 billion next year. Twitter was looking at a net cash outflow of $6.5 billion in 2023, with $12.5 billion in debt from the acquisition and $3 billion in revenue projections. Musk stated that this resulted in a negative cash flow of $3 billion and that Twitter currently has $1 billion in cash.

Twitter's yearly revenue in 2021 was $5 billion, and in February, the firm projected a low-to-mid 20% increase in 2022.

Musk stated that expanding Twitter's subscriber base to the point where it represents a sizable portion of the company's revenue was his "number one priority" during the Spaces session. In light of the current economic climate, several businesses have reduced their marketing spending.