Twitter CEO billionaire Elon Musk has warned the social media platform’s employees of the potential’s bankruptcy.
On Thursday, Elon Musk revealed that Twitter’s financial landscape was bleak and that bankruptcy is a possibility just days after taking over the platform.
The news came after reports revealed that the platform’s top executives began leaving the company with both Yoel Roth, social media platform’s Trust and Safety efforts manager and Robin Wheeler, a sales Vice President, having resigned from the company.
In an exclusive report released by Bloomberg, it was revealed that the recent resignations are “raising concerns about the company’s ability to keep its platform secure and comply with regulatory rules.”
“The social network has a significant debt burden from the acquisition, and has seen a pullback from some advertisers that are concerned about Musk’s plans for content moderation. The Information and Platformer earlier reported Musk’s bankruptcy statement. Musk also told staff on the call that the days of free food and other perks are over at Twitter’s offices, the person said,” Time wrote in its exclusive report.
“In discussing Twitter’s finances and future, Musk said the company needed to move with urgency to make its $8 subscription product, Twitter Blue, something users will want to pay for given the pull back by advertisers impacting revenue,” its report added.
As a result, Musk told Twitter’s employees on Wednesday that there would be “difficult times ahead” for the company and he would be putting an end to remote work.
Following Musk’s announcement, Federal Trade Commission director of public affairs Douglas Farrar, released an official statement, claiming that it’s watching the company closely.
“We are tracking recent developments at Twitter with deep concern. No CEO or company is above the law, and companies must follow our consent decrees. Our revised consent order gives us new tools to ensure compliance, and we are prepared to use them,” Farrar declared.
The news broke after Musk attributed some of the revenue drop to activist pressure.
“There’s concerns with advertisers around brand safety, and that’s really what this is all about. Advertisers right now are not looking to be associated with the events that are currently happening at Twitter.” Rachel Tipograph, CEO of advertising technology firm MikMak.
