Tesla CEO and Twitter chief Elon Musk has informed Twitter employees that the company’s “economic picture ahead is grim.” Noting that “bankruptcy is not out of the question,” the billionaire stressed that “without significant subscription revenue, there’s a good chance Twitter won’t survive the upcoming economic downturn.”
Twitter may go bankrupt, says Elon Musk
Billionaire Elon Musk, who bought Twitter for $44 billion nearly two weeks ago, sent his first email to all Twitter employees on Wednesday, detailing the social media platform’s poor financial condition. “There is no way to sugarcoat the message,” Musk wrote, adding:
To be honest, the economic picture ahead is very bad.
He elaborated that the economic situation is worse for a company like Twitter which is heavily dependent on advertising in a challenging economic environment. “70% of our advertising is brand rather than specific performance, which makes us doubly vulnerable,” he emphasized.
“That’s why the priority over the past ten days has been to develop and launch Twitter Blue Verified subscriptions,” Musk continued, elaborating:
Without significant subscription revenue, there’s a good chance Twitter won’t survive the upcoming economic downturn. We need about half of our revenue from subscriptions.
However, Musk said the social media company would still be “substantially dependent on advertising,” so he’s “working to make sure Twitter continues to appeal to advertisers.” The billionaire emphasized: “The road ahead is difficult and will require intense hard work to be successful.”
Tesla and SpaceX CEOs said Twitter’s policy will be changed and remote work is no longer allowed. Starting Thursday, everyone employed by the social media giant is required to be in the office for at least 40 hours per week, unless they are physically unable to travel or have significant personal obligations.
In addition, Musk held an emergency meeting with Twitter employees on Wednesday. he allegedly Told,
Bankruptcy is not out of the question.
After the meeting, two Twitter executives, Robin Wheeler and Joel Roth, reportedly left the company. Last week, Musk fired nearly 50% of Twitter employees claiming he had no choice as the social media company was losing more than $4 million a day.
Musk admitted on Wednesday that his new $8 a month verification system has problems. “There are several corrupt Legacy Blue ‘verification’ checkmarks still in place, so there is no choice but to remove Legacy Blue in the coming months,” he tweeted. Nonetheless, he insisted that Twitter usage has increased since he took the stage.
This week, he explained how Twitter could generate revenue as a payments company after filing paperwork with the US Financial Crimes Enforcement Network (FinCEN) to start a payments business.
Do you think Twitter will go bankrupt? Let us know in the comments section below.
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