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After the take over of Twitter, Elon Musk informed its Twitter employees that the company’s “economic picture ahead is dire.” Noting that “bankruptcy isn’t out of the question.”
Mr. Musk also stressed as “Without significant subscription revenue, there is a good chance Twitter will not survive the upcoming economic downturn.”
As per the news reported he shared the update via email on November 09, 2022 and said that “there is no way to sugarcoat the message.” He also mentioned the prospect of bankruptcy at a staff meeting the next day, and said the company was running a negative cash flow of several Billion Dollars.
On the other hand he also added that the decision he made regarding the sale of Tesla Stock that is worth around $4 Billion was to save Twitter.
It can’t be ignored that after acquiring Twitter, Elon Musk has become the part of many controversies including the lay-off of Twitter’s staff. While, in the recent meeting held on November 10, 2022, he once again noted that Twitter still has too-much staff, thus requiring it to be more “hard core.”
Additionally, he also dis-continued the remote working of Twitter staff in the previous week. Mr. Musk already made many changes after acquiring Twitter including the blue check verification paid subscription service.
It must be noted that for acquiring Twitter, Mr. Musk took $13 Billion in debt that will then need Twitter to pay more than $1 Billion annually in interest alone.
Elon Musk warned all the employees as he added that the “difficult times ahead”, while his previous announcements including no work from home, no free food and 80-hour work weeks were already facing the criticism.
During a recent meeting, Mr. Musk also added that bankruptcy was a possibility if Twitter doesn’t start generating more cash. It can be seen that in just two weeks of Twitter acquisition for $44 Billion, Mr. Musk has made multiple changes for twitter employees.
The Employee’s Response
After the following statement one of the employees wrote as “Elon has shown that he cares only about recouping the losses he’s incurring as a result of failing to get out of his binding obligation to buy Twitter.”
The employee continued as “This will put a huge amount of personal, professional and legal risk onto engineers: I anticipate that all of you will be pressured by management into pushing out changes that will likely lead to major incidents.”
Furthermore, Douglas Farrar, a spokesperson for the FTC, stated that “We are tracking recent developments at Twitter with deep concern. And 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.”
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
