Elon Musk Addresses Twitter Employees, Warns Company May Die If Revenue is Low
- Elon Musk has told Twitter employees that the company stands the risk of shutting down unless something is done to generate enough revenue
- In a company-wide email, Musk said the firm needs to do something urgent to ramp up revenue
- The warning came as it was disclosed that the income accumulated a $13 billion debt and $1.2 billion fine while Musk delayed the purchase of the firm
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During his first address to Twitter employees since buying the company for $44 billion, Elon Musk said that there is a possibility of bankruptcy if the platform does not start generating more cash.
The warning came as Musk began a turbulent reign at the firm after he fired almost half of the company's employees, disengaged most of its top executives, and asked the remaining ones to stop working remotely.
Source: Getty Images
A flurry of resignations
Bloomberg report said one of its executives, Yoel Roth left the company on Thursday, November 10, 2022. Another executive, Robin Wheeler, resigned, but Musk allegedly asked her to stay on.
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Musk warned in a company-wide email that Twitter might not survive the forthcoming economic downturn if it does not boost subscription revenue to take care of falling advertising income, a Reuters report stated.
Another top shot at the company, a privacy officer, Irishman Kieran resigned on Thursday, according to a Slack message seen by Reuters.
Wheeler, the company's sales executive, had told staff that she was staying back at the firm after being persuaded by Musk, contrasting earlier media reports that she was also leaving.
"I'm still here," Wheeler tweeted late on Thursday.
According to reports, the US Trade Commission said it was watching what was happening on Twitter with deep concern after the exit of three privacy officers and a compliance officer.
The development could lead to Twitter violating regulatory orders.
Company uncovers $13 billion debt
Sources say Twitter has $13 billion debt after its deal with Elon Musk floundered and a total of $1.2 billion interest in the next 12 months.
The interest payment is far more than the company's recently released cash flow, which amounted to $1.1 billion as of June.
In May, the microblogging site agreed to pay $150 million to settle allegations by FTC over the misuse of private information such as phone numbers to target adverts to users after telling them it collected the information for security purposes.
A week after Elon Musk acquired Twitter, Jack Dorsey launches New social media company
Legit.ng reported that barely a week after billionaire businessman Elon Musk snapped up Twitter in a $44 billion long-drawn deal, the platform's founder, Jack Dorsey, has launched a new social media firm.
Dorsey's blockchain company, Bluesky social, announced that it is currently enlisting users for its beta testing.
According to the company's representatives, the announcement enticed about 30,000 users to sign up within two days.
Source: Legit.ng
