The current CEO of Twitter , Elon Musk , pointed out that the bankruptcy of the social network is not ruled out, amid resignations, layoffs and future regulations.
Elon Musk caps a highly complex week after the Twitter acquisition, as he causes sweeping changes to the structure of “his new company.” On Thursday, the businessman mentioned that bankruptcy is not ruled out.
According to Bloomberg , Musk warned of this possibility in a mass call with employees of the firm, adding that it would occur if effective ways to generate income are not found.
The day before, an internal message from Elon Musk to members of the company highlighted the need to resume face-to-face activity as part of measures against “difficult times… There is no way to sweeten the message”, was the first sentence of the letter.
According to Reuters, this situation is aggravated by the departure of Yoel Roth, head of trust and security at Twitter and responsible for combating extreme situations on the platform such as hate speech, misinformation and spam.
The same decision was communicated by Lea Kissner, Head of Security and Information at Twitter, on her profile: “I have had the opportunity to work with incredible people and I am very proud of the privacy, security and IT teams and the work we have done ”, he added on his Twitter account.
I’ve made the hard decision to leave Twitter. I’ve had the opportunity to work with amazing people and I’m so proud of the privacy, security, and IT teams and the work we’ve done.
I’m looking forward to figuring out what’s next, starting with my reviews for @USENIXSecurity 😁
— Lea Kissner (@LeaKissner) November 10, 2022
In addition to these positions, those responsible for privacy and compliance at Twitter have made their positions available. However, positions such as that of Robin Wheeler, the social network’s chief advertising sales executive, remain active.
Twitter under various magnifying glasses
Part of the sudden movements within Twitter have caused the Federal Trade Commission (FTC) in the United States to begin to show “deep concern”, because this wave of resignations could represent a violation of regulatory orders.
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“No CEO or company is above the law, and companies must comply with our consent decrees. Our revised consent order gives us new tools to ensure compliance and we are prepared to use them,” said Douglas Farrar, director of FTC public affairs.
“We spoke with the FTC today about our ongoing obligations and have an ongoing constructive dialogue,” Alex Spiro, an attorney for Elon Musk, wrote.
In addition to the watchful eyes of regulatory bodies, Musk pointed out that Twitter loses an average of $4 million a day after advertisers leave the platform, in response to the inauguration of the CEO of SpaceX.
Companies like GM or Chipotle have decided to raise their own guidelines and content within the social network “while we obtain a better understanding of the direction of the platform under their new leadership.”
In addition, Elon Musk’s constant involvement in political and economic issues – not to mention his negotiations with the Chinese government for the sale of Tesla vehicles in the country – have raised some eyebrows in other countries. Even US President Joe Biden has been clear in pointing out that Musk’s “cooperation and/or technical relations with other countries are worth scrutinizing.”