Elon Musk reveals that Twitter’s cash flow remains negative due to a 50% drop in advertising revenue and the company’s heavy debt load, Reuters reports.
Despite aggressive cost-cutting measures, including layoffs and reduced expenditures, Twitter still faces challenges in reaching positive cash flow.
The company is also facing annual interest payments of around $1.5 billion from the $44 billion debt it took to purchase the company.
Musk said that Twitter Spaces, the audio chat feature, has not generated revenue yet and is currently incurring costs.
