Of the Twitter-Owner Elon Musk According to media reports, the short message service has not ruled out insolvency in 2023 in front of employees. Twitter could have billions of dollars in negative cash flow in the coming year, news site The Information reported on Thursday. If the group does not earn more money than it spends, “bankruptcy cannot be ruled out,” it said. An employee of the industry newsletter Platformer also quoted a corresponding statement from Musk on Twitter.
Twitter was already in the red before the takeover. After the deal, Musk lamented a slump in sales because some major advertisers suspended their ads on Twitter. They worry their ads could appear alongside offensive tweets if Musk relaxes content rules, as announced.
The loan of around $ 13 billion that Musk took out for the purchase also weighs on Twitter. According to media reports, servicing this debt costs around one billion dollars a year. The tech billionaire wants to supplement the advertising revenue, which has so far accounted for 90 percent of revenue, with a subscription business. The launch of his new subscription with verification tick caused chaos at first, because some users celebrities and companies with fake accounts that look deceptively real
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Musk orders office hours – two other top people leave
Musk had previously warned employees of difficult times in an email. The economic situation is “bad,” especially for a company that depends on advertising revenue. In the memo, Musk also announced new policies on the matter home office – in the future, working from home will therefore only be permitted with his express personal permission.
According to the memo, which the US media unanimously quoted from, the employees must Be in the office at least 40 hours a week
. Before the takeover, Twitter’s employees were allowed to work from anywhere. Musk is considered an outspoken opponent of the home office trend. He had already made this clear at his electric car company Tesla.
According to media reports, two other key executives left the company on Thursday: Yoel Roth, who was responsible for filtering out objectionable content, and Robin Wheeler, who was newly appointed to oversee advertiser relations.