Elon Musk warns employees Twitter faces bankruptcy as more Senior Executives quit

*Credit experts find that American billionaire Elon Musk businessman’s deal for Twitter has left the company’s finances in a ‘precarious position, amid regulatory authority’s ‘deep concern’ over the current state of affairs in the global technology firm

Gbenga Kayode | ConsumerConnect

Elon Musk, Interim Chief Executive Officer (CEO) of the microblogging site Twitter, has cautioned the staff of the global tech giant that the company faced the possibility of going bankrupt.

Recall that Musk bought the technology company two weeks ago for $44 billion, after completing the acquisition process.

ConsumerConnect learnt the Tesla and SpaceX CEO, who has ruthlessly begun to clean house since taking over, has said the Big Tech is fast losing over $4 million daily.

The American billionaire businessman and world’s richest person also disclosed the development resulted largely, from advertisers’ fleeing once he took over Twitter ownership and leadership barely weeks ago.

3 more Senior Executives quit Twitter

Meanwhile, three more  Twitter Senior Executives, Friday, November 11, 2022, called it quits with the company on what has been a chaotic day for the firm, even by its own lofty standards, reports Reuters.

Musk’s admission of the possibility of bankruptcy Friday capped a chaotic day, which included a warning from a United States (US) privacy regulator and the exit of the three Executives of the  technology company.

How Senior Executives quit

Yoel Roth, who has overseen Twitter’s response to combat hate speech, misinformation and spam on the service, resigned Thursday, November 10, sources familiar with the matter told Reuters.

Chief Privacy Officer Damien Kieran and Chief Compliance Officer Marianne Fogarty also quit.

Some reports also said Robin Wheeler, the company’s top ad sales executive, was also leaving, but Wheeler denied this, tweeting, “I’m still here,” report stated.

Bankruptcy concerns

On his first mass call with employees, the Twitter ‘Interim’ CEO said he could not rule out the possibility that Twitter would go bankrupt.

Credit experts stated, that Musk’s deal for Twitter left the company’s finances in a precarious position, according to report.

It was gathered that Twitter has $13billion in debt after the acquisition deal, and faces interest payments totalling about $1.2billion in the next one year.

The payments exceed the company’s most recently disclosed cash flow, which amounted to $1.1billion as of the end of June 2022, report noted.

Market regulator expresses ‘deep concern’

In a related development, the US Federal Trade Commission (FTC) said it was watching Twitter with “deep concern” after the three privacy and compliance officers quit the company.

These resignations potentially put Twitter at risk of violating regulatory orders, according to report.

Musk Attorney Alex Spiro told some employees in an e-mail late Thursday that Twitter would remain in compliance.

The billionaire businessman’s Twitter takeover has also sparked concerns that he could face pressure from countries that try to control online speech.