Elon Musk warned in a call with employees that he could not rule out bankruptcy for Twitter Inc (NYSE:TWTR), according to a report by Bloomberg.
Prior to raising bankruptcy concerns, Musk highlighted that Twitter’s revenue from subscriptions, including new verification charges, would need to be boosted if the company was to “survive the upcoming economic downturn”.
After controversially laying off roughly half of Twitter’s workforce, Musk tweeted that the company was facing losses of over US$4mln a day, leaving him with “no choice”.
He reportedly also referenced the social media platform’s falling revenue from advertising, its main source of income, as an increasing number of companies halt their payments over the new CEO’s controversial leadership.
Twitter’s chief information security, privacy and compliance officers have all left the company in recent days, according to Platformer, which cited a Slack message from a senior member of Twitter’s legal team.
Musk also reportedly warned employees: “If you can physically make it to an office and you don’t show up, resignation accepted", as he banned remote working yesterday among company staff.
With Musk now having made the financial trouble Twitter is in blatantly clear, he told employees “the road ahead is arduous and will require intense work to succeed”, outlining that he expects them to be in the office for at least 40 hours per week.