Elon Musk talks about possible Twitter bankruptcy
Elon Musk recently acquires Twitter.
Cascading resignations, warnings from authorities and leaks from advertisers: Elon Musk's Twitter was taking on water from all sides on Thursday, despite his efforts to assure remaining employees that the future is “exciting”.
The future is very exciting, I can't wait to make it happen with you, the new boss said Thursday at the start of an internal meeting for the employees who were not laid off during the mass layoffs a week ago.
But the threat of bankruptcy came when he later admitted he didn't know how short the business would be in revenue next year.
We may be in a cash flow deficit of billions, he said, according to messages between employees seen by AFP. If there is a long and deep recession, we will have to be able to survive, he continued.
In an internal letter the day before, he had written to them that the path was going to be difficult, and that they now had to be in person in the office at least 40 hours a week.
Employees also questioned him about the risks associated with the rapid deployment of new, untested features, the preferred method of the boss of Tesla and SpaceX.
Because the US competition authority (FTC) issued a rare warning against the platform on Thursday. We are following recent developments at Twitter with great concern. No CEO or company is above the law, an FTC spokesperson said.
He reiterated that the platform must comply with the rules an agreement with the agency on data security and confidentiality.
The agreement in question, revised this year, gives us new tools to ensure that it is respected, and we are ready to use them, added the spokesperson, in reference to the substantial fines that the FTC could inflict.
However, many employees aware of these regulations are no longer at Twitter.
The boss of Tesla and SpaceX laid off half of the California company's 7,500 employees a week ago, ten days after buying it up and becoming its sole master on board.
Elon Musk has fired half of Twitter's 7,500 employees.
Hundreds of people had already left this summer, and executive resignations have continued in recent days.
On Thursday, Damien Kieran, Data Privacy Manager, and Lea Kissner, Security Manager, announced their departures.
Other directors have also decided to step down. x27;erased, according to US media, including Yoel Roth, site security manager, and Robin Wheeler, a customer solutions executive.
Both had so far publicly defended Twitter and its controversial new owner.
Amen, Robin Wheeler agreed several times on Wednesday, when Elon Musk detailed his vision for the digital public square, during an online conference for advertisers.
Yoel Roth himself intervened on several occasions to explain changes or ensure that the fight against misinformation remained a top priority.
But the power of the libertarian entrepreneur over the very influential social network worries many authorities, advertisers, users and associations for the defense of minorities.
He tried to reassure, recalling that the moderation of content, a safeguard against abuse on the platform, had not changed for the moment.
But his hasty decisions and provocations on Twitter have sparked daily controversy for two weeks.
Several advertisers have suspended spending on the tweet network, including the business model 90% dependent on advertising.
Insider Intelligence has downgraded its forecast for Twitter's advertising revenue by 39% in 2023 and 2024.
Elon Musk wants to diversify sources of revenue, subscriptions for users to content creation tools for influencers.
But Wednesday's cacophonous launch of Twitter Blue, the new $8-a-month account authentication formula, resulted in conflicting official statements and the eruption of fake profiles.
Please note that Twitter will be doing a lot of silly things in the coming months. We'll keep what works and change what doesn't, tweeted the multi-billionaire.
Earlier this week, he sold nearly US$4 billion in his Tesla flagship. I did it to save Twitter, he told employees Thursday.
Elon Musk wanted to buy the California company in the spring, then he didn't. #x27;wanted more of it in the summer, and was forced to acquire it in the fall to avoid a lawsuit, putting it heavily in debt.
Thursday, he claimed that Twitter usage continues to increase and added: One thing is for sure: it's not boring.
This whole circus at Twitter needs to stop…It's hurting [Tesla's] brand image, commented analyst Dan Ives on Thursday.