Elon Musk said bankruptcy was a possibility in his first address to Twitter employees since buying the company for $44 billion, according to a person familiar with the matter.
The Tesla owner reportedly said during the speech that bankruptcy is not out of the question.
Meanwhile, according to a source, Yoel Roth and Robin Wheeler, two executives who have been part of Musk’s new executive team to date, have stepped down.
Musk ousted most of the social network’s top executive team when his acquisition was completed last month. Roth had since handled all of the social network’s trust and security efforts, while Wheeler, a vice president of sales, had recently overseen relationships with nervous advertisers concerned about content.
The social network has a significant debt burden from the acquisition and has seen a pullback from some advertisers concerned about Musk’s content moderation plans. The Information and Platformer previously reported on Musk’s bankruptcy filing.
Musk also told employees on the call that the days of free food and other perks at Twitter’s offices are over, the person said.
Discussing Twitter’s finances and future, Musk said the company must act urgently to make its $8 subscription product Twitter Blue, something users want to pay for as advertisers hurt sales.
Musk warned employees of “difficult times” in an email late Wednesday without “whitewashing the message” about the company’s economic prospects. He ended employees’ ability to work remotely unless he personally approved it.
The billionaire recently cut half of Twitter’s staff and made dramatic changes to subscription rules. On Thursday, the changes resulted in several major advertisers being impersonated by accounts with blue ticks, indicating verification.
Earlier Thursday, Twitter’s chief information security officer, chief privacy officer and chief compliance officer left the company, raising concerns about the company’s ability to keep its platform secure and comply with government regulations. Twitter is currently bound by a Federal Trade Commission consent decree governing the company’s handling of user data and could be subject to fines for violators.
https://www.independent.ie/business/technology/elon-musk-tells-twitter-staff-bankruptcy-not-out-of-the-question-42135596.html Elon Musk says bankruptcy of Twitter employees is ‘not out of the question’