Elon Musk warns of potential Twitter bankruptcy as top executives leave: "May lose billions next year"
After Musk pushed out most of the top executive team when he acquired the platform Roth and Wheeler took over the positions in the company.
Elon Musk told Twitter employees on that the company may have a “net negative cash flow of several billion dollars” next year, adding that “bankruptcy is not out of the question” if the company can’t “bring in more cash than we spend.” This come after the departures of senior executives viewed as future leaders in the social media platform.
According to reports, after Musk pushed out most of the top executive team when he acquired the platform Roth and Wheeler took over the positions in the company. Roth had taken over all of the social network’s Trust and Safety efforts, while Wheeler, a sales vice president, had recently stepped up to oversee relations with jittery advertisers concerned about content.
Musk, who ruthlessly moved to clean house after taking over Twitter for $44 billion on Oct. 27, has said the company was losing more than $4 million a day, largely because advertisers started fleeing once he took over.
The social network has a significant debt burden from the acquisition, and has seen a pullback from some advertisers that are concerned about Musk’s plans for content moderation. The Information and Platformer earlier reported Musk’s bankruptcy statement.
Reportedly, Musk had also told staff on the call that the days of free food and other perks are over at Twitter’s office.
Musk in an email late on Wednesday (US time) warned employees of “difficult times ahead” and ended employees’ ability to work remotely unless he personally approved it.
“Sorry that this is my first email to the whole company, but there is no way to sugarcoat the message,” wrote Musk, before he described a bleak economic climate for businesses like Twitter that rely almost entirely on advertising to make money.
With inputs from Agencies
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