PanamaTimes

Friday, Apr 26, 2024

Elon Musk says Twitter 'may face bankruptcy' as more staff quit and top regulator issues warning

Elon Musk says Twitter 'may face bankruptcy' as more staff quit and top regulator issues warning

Musk appeared to brush off reports of another day of disarray at his new company, tweeting: "Usage of Twitter continues to rise. One thing is for sure: it isn't boring!"
Elon Musk raised the possibility of Twitter going bankrupt as the company endured perhaps its most chaotic day since he took control two weeks ago.

The world's richest man outlined his concerns about the firm's precarious financial position during his first mass call with its remaining employees, having already carried out thousands of sackings.

Twitter endured further departures as reports of the call first emerged, with its head of trust and safety, Yoel Roth, updating his profile to indicate that he had left.

In an earlier staff email, Musk warned Twitter - which he bought for $44bn at the end of October, after spending months trying to get out of it - would not "survive the upcoming economic downturn" without boosting revenue.

Musk wants to do that via the revamped $8-per-month Twitter Blue service, designed to offset falling advertising income as companies fret about his stance on content moderation.

Fears over his approach to user privacy also prompted an intervention by America's Federal Trade Commission on Thursday evening, warning "no chief executive or company is above the law".

Musk himself appeared to brush off reports of another day of disarray at his new company, tweeting: "Usage of Twitter continues to rise. One thing is for sure: it isn't boring!"

Twitter's grim finances

During his meeting with staff on Thursday, Musk reportedly warned Twitter may lose billions of dollars next year.

Bankruptcy was therefore not out of the question, he said, as the company grapples with $13bn (£11bn) of debt after his takeover deal and interest payments totalling almost $1.2bn (£1bn) over the next 12 months.

Those payments exceed Twitter's most recently disclosed cash flow, which was $1.1bn (£900m) at the end of June.

Musk said the firm was losing $4m (£3.4m) each day, largely because of advertisers putting spending on hold due to fears about his "free speech absolutist" position.

His attempted solution, Twitter Blue, has ended up somewhat proving the point. It entitles anyone who signs up to a blue checkmark previously reserved for verified accounts, but has been abused by pranksters posting offensive messages under the guise of Tony Blair, George W Bush, and even Nintendo mascot Super Mario.

The option to sign up has since disappeared from Twitter's iOS app.

 


More staff departures

Musk laid off half of Twitter's 8,000-strong workforce soon after his takeover, having moved even more quickly to dismiss its top executives.

This week has seen even more people leave, chief among them Mr Roth, who has overseen Twitter's response to hate speech, misinformation, and spam.

Mr Roth had been one of the more vocal remaining members of Twitter's top team since Musk's takeover, assuring users and advertisers that the platform was still committed to combating those issues.

His profile changed on Thursday to indicate that he no longer worked at Twitter - he is believed to have resigned.

Earlier in the day, chief information security officer Lea Kissner tweeted that she had quit, while an internal message seen by Reuters news agency said chief privacy officer Marianne Fogarty had also gone.

It came after Musk told staff he was banning working from home, with all workers expected to be in the office for at least 40 hours a week.

Warning from regulator

The exodus of safety, security, and privacy officers saw the US Federal Trade Commission (FTC) express its "deep concern" about developments at Twitter.

In May, Twitter agreed to pay $150m (£128m) to settle allegations by the FTC it misused private user information to target advertising after telling them the data was collected purely for security reasons.

Douglas Farrar, the FTC's director of public affairs, told Reuters: "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."
Newsletter

Related Articles

PanamaTimes
0:00
0:00
Close
Apple warns against drying iPhones with rice
In a recent High Court hearing, the U.S. argued that Julian Assange endangered lives by releasing classified information.
Global Law Enforcement Dismantles Lockbit Ransomware Operation
Russian opposition leader Alexey Navalny has died at the Arctic prison colony
The President of Argentina Javier Mile does not fly private, he flies commercial, with the citizens he represents. And they LOVE him for it.
Bitcoin Reaches $50,000 for First Time in Over Two Years
Belo Horizonte: Brazil's Rising Carnival Hotspot for 2024
In El Salvador, the 'Trump of Latin America' stuns the world with a speech slamming woke policing after winning a landslide election
Tucker’s interview with Putin is over 50M views on X within the first 5 hours.
Finnish Airline, Finnair, is voluntarily weighing passengers to better estimate flight cargo weight
President Nayib Bukele has proudly announced El Salvador's remarkable achievement of becoming the safest nation in the Western Hemisphere.
Former Chilean President Sebastian Piñera Dies in Helicopter Crash
This farmer seems to understand science a bit more than the event organizer, Klaus Schwab.
Facebook turns 20: From Mark Zuckerberg's dormitory to a $1trn company
The Coolest Dictator in the World" on the Path to Victory in El Salvador
Macron, France and fake news
Indian-Origin Man 'King' Arrested For Smuggling $16 Million Drugs Into US
Can someone teach Americans that not every person with slanted eyes is Chinese?
Europe's Farmers Feeding the People, Protesting Against Politicians Who Do Nothing for Their Country and Serve Only Themselves at Taxpayers' Expense
Paris Restaurant That Inspired 'Ratatouille' Loses $1.6 Million Worth Of Wine
Brazilian Police Investigate Bolsonaro's Son for Alleged Illegal Spying
Police in Brazil Raid Residence of Bolsonaro Associate Over Allegations of Illegal Spying
Border Dispute Escalates as Texas Governor Vows Increased Razor Wire
OpenAI Enhances ChatGPT-4 Model, Potentially Addressing AI "Laziness" Issue
The NSA finally acknowledges spying on Americans by acquiring sensitive data
Report Reveals Toxic Telegram Group Generating X-Rated AI-Generated Fake Images of Taylor Swift
US Border Patrol States 'No Plans' to Remove Razor Wire Installed in Texas
Bitcoin Experiences Approximately 20% Decline in Value
Klaus Schwab recently appointed himself as the Earth's "trustee of the future."
DeSantis Drops Out, Endorses Trump.
Nikki Haley said former President Trump is "just not at the same level" of mental fitness as he was while president in 2016.
Residents of a southern Mexican town set the government palace on fire in response to the police killing of a young man
Samsung Launches AI-Driven Galaxy S24, Ushering in New Smartphone Era
Judge Questions SEC's Regulatory Overreach in Coinbase Lawsuit
The Ecuador prosecutor who was investigating the television studio attack, has been assassinated.
Is artificial intelligence the solution to cyber security threats?
Vivek Ramaswamy suspends his US election campaign and endorses Trump.
Viral Satire: A Staged Satirical Clip Mistaken as Real Footage from the 2024 World Economic Forum in Davos
The AI Revolution in the Workforce: CEOs at Davos Predict Major Job Cuts in 2024
Ecuador Reports 178 Hostages in Prison Gang Standoff
The Startling Cuban Espionage Case That Has Rattled the US Government
Two Armed Men in Ecuador, Dressed as Batman and The Joker Storm the Streets.
Armed Gang Raids Ecuadorian TV Station Following State of Emergency Declaration
Anti-Democratic Canada: Journalist Arrested for Questioning Canadian Finance Minister on Support of Terrorist Group
Ecuador's 'Most-Wanted' Criminal Vanishes from Prison
Mexican Cartel Supplied Wi-Fi to Locals Under Threat of Fatal Consequences for Non-Compliance
Border Surge Leads to Over 11,000 Migrants Waiting in Northern Mexico
Outsider Candidates Triumph in Latin American Elections
As Argentina Goes to the Polls, Will the Proposal to Replace the Peso with the Dollar Secure Votes?
Fatal Shark Attack Claims Life of Boston Woman Paddleboarding Near Bahamas Resort, According to Police
×