The new owner and CEO of Twitter, Elon Muskhas warned the employees of the social network through a call made this Thursday about the possibility that its application, the one for which it paid 44,000 million dollars two weeks ago, will be declared in bankruptcy. At least, as long as the platform does not start generating more income, according to the ‘Bloomberg’ agency.
While the economic situation of Twitter worsened by the effects that the arrival of Musk and his plans regarding content moderation are having on the advertising business, the number of managers who leave the ship of the social network continues to increase. Only yesterday five new names, including the company’s security, privacy and sales chiefs, were added to a list that has not stopped growing in recent days. All casualties have been covered by a small group of advisers close to the tycoon.
Twitter’s situation is currently being so complicated economically that, according to those attending the meeting with Musk, the executive confirmed that a few hours ago had to sell $4 billion worth of Tesla stock to get “save” Twitter, according to information from ‘The New York Times’.
Despite the fact that last week the employer laid off approximately 50% of the social network’s workforce, which until then consisted of 7,500 people, he considers that there is still an excess of workers at this time, so it is not ruled out that there will be more departures from the company soon.
Musk’s mistrust about the future of Twitter is known just a few hours after the businessman announced his decision to end widespread teleworking in the social network, calling on workers to spend 40 hours a week in the company’s offices. He also ended the extra day off from vacation per month, established at the start of the Covid-19 pandemic.
From bad to worse
Twitter’s economic situation has not been ideal for some time. The company has consistently lost money over the last decade. Now, in addition, the purchase by Elon Musk has left it in a much more delicate situation. And not only because of the known (and recognized) problems in advertising, which until not so long ago represented 90% of the company’s income.
In order to complete the purchase of 44,000 million dollars, Musk loaded the social network with a credit of 13,000 million. He now he must pay 1,000 million in interest each year until the debt is settled.
The executive, meanwhile, is looking for ways to find new revenue; the first of them, the change in the paid subscription Twitter Blue, which costs eight dollars and adds new features to attract the attention of users, including the achievement of the famous verification sign. That one that right now can mean two things: that you are who you say you are or that you simply pay a monthly fee.