Bankruptcy isn’t out of the question: Musk

Closing a chaotic day at Twitter that saw a warning from the FTC, and the departure of senior executives, Elon Musk warned employees of “dire” economic challenges and said bankruptcy is a possibility.

Musk’s bankruptcy comment came Thursday in a meeting with the staff.

In an email to employees the same day, the billionaire shared his views on Twitter Blue and said, “Without significant subscription revenue, there is a good chance Twitter will not survive the upcoming economic downturn. We need roughly half of our revenue to be subscription.”

With Musk’s $44 billion takeover, he has loaded the company with $13 billion in debt on which it has interest payments of around $1.2 billion in the next 12 months.

Musk also informed he was not planning on allowing his employees to work remotely.

The exodus continues
The bankruptcy blow came the same day when several top executives quit the company. The head of Safety and Integrity, Yoel Roth, along with the chief privacy officer, chief compliance officer and a few other top executives left the company on Thursday.

Just two weeks under Musk’s leadership, the microblogging platform saw layoffs of around 50% of its employees and several changes in its functioning.