In his first address to the newly acquired Twitter staff, the world¡¯s richest person, Elon Musk, has issued multiple warnings, indicating ¡®difficult times¡¯ ahead.
The billionaire said yesterday that he could not rule out bankruptcy if the company doesn¡¯t start generating more cash.
Earlier on Thursday, Twitter¡¯s Chief Information Security Officer, Chief Privacy Officer and Chief Compliance Officer resigned and departed, raising concerns about the company¡¯s ability to keep its platform secure and comply with regulations, as per a Bloomberg report.?
The U.S. Federal Trade Commission said it was watching Twitter with "deep concern" after the three privacy and compliance officers quit. These resignations potentially put Twitter at risk of violating regulatory orders.
Earlier, Elon Musk had quickly fired many top executives at Twitter, including (ex) CEO?Parag Agrawal, as soon as he completed the takeover in late October.? ?This was followed by mass layoffs, which affected around 3,700 Twitter employees, i.e. around 50% of Twitter's workforce.
Elon Musk also said that?Employees at Twitter should prepare for 80-hour work weeks and the end of work-from-home flexibility.?, and fewer office perks like free food.? ¡°If you don¡¯t want to come (to office), resignation accepted.¡±
When discussing Twitter's finances and future, Elon Musk said the company needed to move with urgency to make its $8?subscription?product, Twitter Blue, something users will want to pay for, given a pullback by advertisers who are concerned about harmful content.
Elon Musk had in the past used the threat of financial ruin in an attempt to motivate workers, according to a person familiar with his management style. He¡¯s trying to convey the notion that if people don¡¯t work hard,?Twitter?will be left in a very difficult spot, this person said, as per the report.
Musk also hinted at products he¡¯d like to introduce, including payments, ads that are more conversational, and interest-bearing checking accounts. He added that onboarding to the Twitter?app should be smoother, as is the case with TikTok.
The debt Twitter took on to finance Elon Musk¡¯s buyout is leaving it with interest costs that, by one estimate, will surge to?$1.2 billion a year, as per the report.
Meanwhile, Moody¡¯s Investors Service recently cut Twitter¡¯s credit rating deeper into junk territory. ¡°Twitter¡¯s governance risk is highly negative reflecting Moody¡¯s expectation for aggressive financial policies and concentrated ownership by Elon Musk,¡± the ratings firm reportedly said.
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"We are tracking recent developments at Twitter with deep concern," said Douglas Farrar, the FTC's director of public affairs, as per Reuters report. For the uninitiated, FTC (Federal Trade Commission) is an independent agency of the United States¡¯ government, whose principal mission is the enforcement of civil antitrust law and the promotion of consumer protection
"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," FTC¡¯s Farrar said.
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