Twitter Faces Bankruptcy, Warns Elon Musk As More Execs Quit
Billionaire businessman and new owner of Twitter, Elon Musk, has warned of the possibility of the company going bankrupt.
This comes alongside news that another Twitter executive, Head of Trust and Safety, Yoel Roth, quit his position.
As of Thursday, Roth’s Twitter bio reads ‘Former Head of Trust and Safety at Twitter’.
He was responsible for Twitter’s actions to combat hate speech, misinformation, and spam on the service.
Prior to that, in his first company-wide email, Musk had informed staff that he could not rule out bankruptcy as Twitter would not be able to “survive the upcoming economic downturn” if it fails to boost subscription revenue to offset falling advertising income, Reuters reports.
He also told employees that the company was likely to lose billions of dollars this year, adding that remote work would no longer be allowed and they would be expected in the office for at least 40 hours per week.
Another company executive, Lea Kissner, who was Chief Information Security Officer tweeted that she had quit earlier on Thursday.
Twitter’s Chief Privacy Officer Damien Kieran and Chief Compliance Officer Marianne Fogarty also resigned.
As a result of the privacy and compliance officers’ resignation, the U.S. Federal Trade Commission said it was watching Twitter with “deep concern”.
Twitter is currently $13 billion in debt following Musk’s acquisition, which could be one of the things that prompted him to charge $8 a month for the company’s subscription service which will now include the blue check verification for all subscribers.
Nevertheless, advertisers have continued to flee the platform ever since Musk took over. Popular food chain, Chipotle Mexican Grill on Thursday, announced that it had stopped its paid content on Twitter until it gains a better understanding of the new leadership.
American automobile manufacturer, General Motors, had also halted advertisements on the platform after Musk began running it.