Elon Musk warns Twitter employees of possible bankruptcy in the future
SAN FRANCISCO, CALIFORNIA: Twitter's new CEO Elon Musk has not ruled out the possibility of it going bankrupt in the near future. According to the Managing Editor of Platformer, the company is in dark over its revenue, and the new owner allegedly told his employees on Thursday, November 10, that the possibility of going bankrupt is looming large. A source also told Reuters that Musk is going to head an all-hands meeting with Twitter employees.
The latest update has come amid reports of the microblogging site’s top officials quitting the sinking ship, which includes Chief Privacy Officer Damien Kieran and Chief Compliance Officer Marianne Fogarty, reported Reuters. Twitter recently let go of half of its employees after Musk acquiring the platform for $44 billion in October. In a series of new decisions and revamping the popular platform among all age groups, Musk has revealed his plan to charge $8 a month for the Twitter Blue service, which includes a blue check verification, and he has also committed to getting rid of fake accounts.
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Wow. Elon Musk just told Twitter employees he’s not sure how much run rate the company has and “bankruptcy isn’t out of the question.”
— Zoë Schiffer (@ZoeSchiffer) November 10, 2022
Amid Twitter’s top privacy and compliance officers’ resignation, the US Federal Trade Commission commented that it is keeping a close eye on the social media platform, with "deep concern." Douglas Farrar, the FTC’s director of public affairs said to the press agency that it is potentially putting the organization at risk of violating regulatory orders, “We are tracking recent developments at Twitter with deep concern.” He added, “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.”
Interestingly, Twitter had to cough $150 million to settle allegations by the FTC that it misused private details, such as phone numbers, to target advertising to users. However, they were told the information is being collected only for security purposes.
In the note obtained by Reuters, which an attorney on Twitter’s privacy team reported about the executive departures, and later posted on Twitter’s Slack messaging system on Thursday, November 10. “Elon puts rockets into space, he’s not afraid of the FTC,” the attorney quoted legal chief of Twitter Alex Spiro as saying on Musk's ability to take "huge amount of risks" with the platform, reported the New York Post.
With its major players, such as former CEO Parag Agrawal, top management, and the organization’s advertising and marketing chiefs out, there is a major concern about Twitter’s compliance with regulations. The concern was seconded by US President Joe Biden on Wednesday, November 9, and he said that Musk's “cooperation and/or technical relationships with other countries is worthy of being looked at.”