Twitter could go bankrupt. Elon Musk does not rule out this possibility and even announced it to employees during a meeting organized at the last minute. After mass resignations, a warning from the authorities and the flight of advertisers, Twitter is in bad shape.
Since the tumultuous arrival of Elon Musk at the head of Twitter, the blue bird is taking on water. Leaks come from everywhere. Between the series resignations of executives, the warning of the American authorities and the advertisers who have jumped ship, Twitter is far from being at its best. Elon Musk who tried to reassure advertisers himself is considering bankruptcy. He told the employees at a meeting arranged at the last minute.
It is therefore chaos both on Twitter with the paid certification used by a wave of fake accounts and in the offices of the company. As Platformer’s Zoë Schiffer reported, Elon Musk called a meeting yesterday with an hour’s notice. He himself was 15 minutes late. It was his first meeting with employees since the takeover of Twitter. He mentioned a potential bankruptcy of Twitter.
A possible bankruptcy of Twitter in the face of the “disastrous” economic situation, according to Elon Musk
The meeting was organized by Elon Musk to take stock of the rather delicate situation of Twitter. He reiterated that teleworking is no longer allowed. The American billionaire has always been against remote work which is not “more palatable” with Tesla for a few months already. “If you can physically come to the office and you do not show up, your resignation is accepted“, he told employees. This was not the main topic of the meeting, however.
Employees did not expect it at all, but Elon Musk raised the possibility of bankruptcy. According to him, “the future economic situation is dire“. Twitter now accumulates more than 10 billion dollars in debt. The company may have difficulty repaying them with high interest rates and the flight of advertisers. It is recalled that advertising content is Twitter’s main income. Therefore, a bankruptcy would allow Elon Musk to reduce the debt of the platform.In return, he would lose a significant share in the company, but he would still have control of it.
Elon Musk asks Twitter employees to be “hardcore”
Additionally, an employee asked him how he plans to handle attrition within the company. “I don’t know how to answer that, but I can tell you it’s about being hardcore. A small number of exceptional, highly motivated people can do better than a smaller group of high performers with motivations. If you can’t perform well, then Twitter isn’t for you“, replied the CEO of Tesla.
Twitter actually accumulates executive resignations. Two of the most recent and important are from Yoel Roth, who was the moderation and safety manager, and Robin Wheeler, who was the client solutions manager.