Elon Musk, the company’s new owner, said that Twitter Inc. might go bankrupt on Thursday. He ended a hectic day that also saw the company’s head of trust and safety leave. Additionally, a privacy regulator in the US issued a warning.
Two weeks after purchasing it for $44 billion. The billionaire indicated on his first conference call with staff that he could not rule out bankruptcy. Credit experts claim that this transaction has put Twitter’s finances in jeopardy.
Three people who have seen the message claimed that Musk earlier in the day warned Twitter that if it doesn’t increase subscription revenue to balance declining advertising revenues. It won’t be able to “survive the upcoming economic downturn.”
According to Reports, Yoel Roth, who oversaw Twitter’s efforts to tackle hate speech, false information, and spam on the service, quit on Thursday.
Roth identified himself as the company’s “Former Head of Trust & Safety” in his Twitter bio on Thursday.
Requests for comment from Roth went unanswered. A news portal initially reported his exit. However, Lea Kissner, Twitter’s chief information security officer, announced earlier on Thursday that they had left.
Damien Kieran, Twitter’s chief privacy officer, and Marianne Fogarty, its chief compliance officer, both submitted their resignations.
Robin Wheeler made it clear about her existence in the firm
In contrast to earlier media reports that Robin Wheeler, too, would be leaving. Robin Wheeler, the business’s top ad sales executive, assured staff in a memo that she was staying at the company.
Wheeler tweeted late on Thursday, “I’m still here.”
Following the departure of the three privacy and compliance officers. The US Federal Trade Commission declared that it closely monitored Twitter with “deep concern.” Due to these resignations, Twitter may violate legal requirements.
Alex Spiro, an attorney for Musk, informed certain employees via email. He emailed late on Thursday that Twitter will continue to comply.
“We spoke to the FTC today about our continuing obligations and have an ongoing constructive dialogue,” wrote Spiro.
Twitter will be held responsible for disobeying orders
He said that only Twitter could be held accountable for disobeying orders, not specific employees.
“I understand that there have been employees at Twitter who do not even work on the FTC matter commenting that they could (go) to jail if we were not in compliance – that is simply not how this works,” he wrote.
Musk warned that the business could lose billions of dollars in the upcoming year in his first meeting with several Twitter employees on Thursday afternoon.
Musk also stated that remote work would no longer be permitted. Additionally, employees would be required to spend at least 40 hours a week in the office.
Inquiries about possible bankruptcy and the FTC warning. Twitter, Musk, or Spiro did not answer even the departures.
After assuming control on October 27, Musk brutally attempted to purge the organization. Further, he claimed that the company lost more than $4 million daily. Mostly as a result of sponsors leaving after he took charge.
After the deal, Twitter owes $13 billion in debt, with interest payments reaching around $1.2 billion over the following 12 months. The payouts are greater than Twitter’s most recent cash flow disclosure, which was $1.1 billion as of the end of June.
For the Twitter Blue service, which will have a blue check verification, Musk has started charging $8 per month.
