Elon Musk Hints At Bankruptcy As Senior Executives Leave Twitter: Report

Twitter also got a warning from a US regulator amid the exit of senior executives who were seen as future leaders.

Elon Musk hints at Bankruptcy as senior executives leave Twitter

Twitter's new chief Elon Musk raised concern about a possible bankruptcy at a time when the social media platform also received a warning from a US regulator amid the exit of senior executives who were seen as future leaders.

The billionaire entrepreneur conveyed to Twitter employees on a call that he could not rule out bankruptcy, reported Bloomberg News. This comes after two weeks Musk acquired the social media platform for $44 billion, a deal that credit experts believe has left the company in a difficult financial position.

Two executives including Yoel Roth and Robin Wheeler have resigned. They had apparently moderated a Twitter Spaces chat with Musk as he tried to address advertisers’ concerns, according to the Reuters report.

Twitter’s chief security officer Lea Kissner also left the company on Thursday. Chief privacy officer Damien Kieran and Chief compliance officer Marianne Fogarty also resigned, as per the internal message posted to Twitter’s Slack messaging system by an attorney on its privacy team, reported Reuters.

The US Federal Trade Commission has been closely watching Twitter with “deep concern” as resignations of these officials potentially put the company at risk of violating regulatory orders.

“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,” said Douglas Farrar, the FTC’s director of public affairs.

In May, Twitter agreed to pay $150 million in regard to allegations by the FTC as it claimed the company misused private information, like phone numbers, to target advertising to users on the pretext that the information was collected only for security reasons.

On Thursday, Musk formally announced the ending of remote work through a mail to Twitter employees after a chaotic week that witnessed half of its employees being fired. Musk mentioned in the email that remote work would no longer be allowed and that Twitter employees would be expected to report to the office for at least 40 hours per week, according to Bloomberg.

Musk is progressing with his plans to slim down Twitter since he bought the 396 million-member micro-blogging platform for $44 billion on October 27.

Musk’s deal has taken Twitter private, dissolved the platform’s board and enhanced his unilateral power as CEO. But mass redundancy announcements made since he took control have been scrutinised globally.