Media – Musk does not rule out bankruptcy of Twitter in front of employees

Elon Musk

The Twitter boss apparently spoke to the workforce today.

(Photo: Reuters)

san francisco Two weeks after taking over Twitter, Elon Musk warned of financial risks for the company. In a speech to the workforce and in a first email to Twitter employees, he warned of a difficult economic situation, as reported unanimously by the Bloomberg news agency, the newspaper “New York Times” and the technology service “Platformer”.

In the email to the workforce, which was circulated by several media outlets, Musk wrote: “Without significant subscription revenue, there is a good chance that Twitter will not survive the upcoming economic downturn.” Around half of the platform’s revenue will have to come from subscriptions in the future -Receipts coming, Musk wrote. Around 90 percent of Twitter’s sales currently come from advertising revenue.

Musk also lifted the home office rules and introduced office duty. “Starting tomorrow (Thursday) everyone is required to be in the office at least 40 hours per week,” Musk wrote.

The email was sent late in the evening local time in San Francisco. At that point in time, the first employees in Europe were already on duty and confused because they did not know whether they should now go directly to the offices. However, their managers could not be reached due to the time difference, according to company circles.

Top jobs of the day

Find the best jobs now and
be notified by email.

In the email to staff, Musk highlighted the special role of two Twitter executives: Yoel Roth and Robin Wheeler. After Musk fired every second person on Twitter a week ago, Roth had risen to the top security officer and led the fight against misinformation. Wheeler took care of contact with advertisers.

However, just hours after the email, Bloomberg, the New York Times and The Verge reported that both Roth and Wheeler had quit their jobs at Twitter.

In addition, several media outlets, including The Verge, quoted a farewell message from several other top legal executives at the company, who cautioned against Musk’s leadership style. In the current situation, Twitter runs the risk of rolling out new products so quickly that they do not comply with existing laws. Millions in fines from the supervisory authorities could be imminent, the media quoted from the farewell message.

In May, Twitter had to pay a fine of 150 million dollars as a result of a procedure by the competition authority FTC. The authority had accused Twitter of using secretly stored e-mail addresses and telephone numbers of users for advertising, although the data should actually only be used for security purposes.

The pressure on Twitter is great to open up new sources of income. The platform had made a loss for eight of the past ten years. Elon Musk took out a $13 billion loan. The cost of servicing the debt alone is said to amount to a billion dollars. Twitter had revenue of around $5.1 billion and a loss of around $500 million last year.

More: Mark Zuckerberg admits mistakes and fires 11,000 employees.

source site-12