US billionaire Elon Musk stated that Twitter he recently purchased is currently like a plane crash, explaining why he opted to slash costs at the company by instituting regulations and mass layoffs in the weeks following his purchase.
“This company feels like you’re on a plane going towards the ground at high velocity, with the engines burning and the controls failing to work,” Musk expressed his feelings Tuesday evening on Twitter Space.
During the discussion, Musk admitted that his actions “may appear spurious, odd, or whatever at times.”
“It’s because we have an emergency fire drill on our hands,” he added. “Not because I’m like naturally capricious.”
Musk stated that the company’s condition has been dire since May this year. This comes only days after Musk revealed on Twitter that he would stand down as CEO of the social media giant and is seeking a replacement.
Musk’s tenure as CEO has been defined by abruptly imposed rules and policy changes, which are frequently withdrawn or amended soon after they are made public.
He stated earlier this week that he has “spent the last five weeks slashing costs like crazy” and working on a better-paid subscription option for the site.
He predicted that if the changes are not made, Twitter will have a $3 billion negative cash flow next year. He blamed the $US12.5 billion in debt connected to his April agreement to buy the company and interest rate hikes by the US Federal Reserve.
Musk’s actions have also alarmed Twitter advertisers and offended users.
Musk also fired more than half of Twitter’s workers, fired contract content moderators, and disbanded a council of trust and safety advisors formed in 2016 to address hate speech and other issues on the network.