Elon Musk warns of Twitter bankruptcy as more senior executives quit: Report
The warning came amid a tumultuous start to Musk's reign at the social media company -- a two-week period in which he has fired half of Twitter's staff, ushered out most of the top executives and ordered the remaining employees to stop working from home
FollowElon Musk, the company's new owner, said that Twitter may go bankrupt, capping a chaotic day that also saw top employees who were expected to become future leaders leave the company and get a warning from a US regulator.
Two weeks after purchasing it for $44 billion, according to credit experts, the billionaire warned Twitter staff on a call that he could not rule out bankruptcy, according to Bloomberg News. The transaction put Twitter's finances in jeopardy.
According to the Information, Musk warned that the firm might lose billions of dollars in the upcoming fiscal year in his first meeting with all Twitter workers on Thursday afternoon.
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Media reports suggest that two employees, Yoel Roth and Robin Wheeler, who moderated a Twitter Spaces discussion with Elon Musk on Wednesday as he attempted to allay advertisers' fears, had quit. Requests for response from Roth and Wheeler were not immediately entertained.
After Musk took control, Wheeler served as the face of Twitter's advertising campaign. According to Roth, who oversaw safety and integrity at Twitter, there are now 95% fewer views of hazardous information in search results than there were before to Musk's takeover.
Last week, Musk revealed intentions to cut the company's workforce in half, pledged to eliminate fraudulent accounts, and disclosed plans to charge $8 per month for the Twitter Blue service, which would feature a blue check verification.
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After the acquisition, 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.
According to Bloomberg News, Musk wrote his first email to Twitter staff on Thursday informing them that remote work would no longer be permitted and that they should plan to spend at least 40 hours per week in the office.
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