Fun

Elon Musk Tells Twitter Staff Economic Picture Ahead Is Dire — ‘Bankruptcy Isn’t Out of the Question’

News Feed - 2022-11-13 08:11:12

Elon Musk Tells Twitter Staff Economic Picture Ahead Is Dire — "Bankruptcy Isn"t Out of the Question"


Tesla CEO and Twitter chief Elon Musk has informed Twitter employees that the company’s “economic picture ahead is dire.” Noting that “bankruptcy isn’t out of the question,” the billionaire stressed that “Without significant subscription revenue, there is a good chance Twitter will not survive the upcoming economic downturn.” Twitter Could Go Bankrupt, Says Elon Musk


Elon Musk, the billionaire who bought Twitter for $44 billion about two weeks ago, sent his first email to all Twitter employees Wednesday informing them of the social media platform’s grim financial situation. “There is no way to sugarcoat the message,” Musk wrote, adding: Frankly, the economic picture ahead is dire.


He proceeded to detail that the economic situation is worse for a company like Twitter which is highly dependent on advertising in a challenging economic climate. “70% of our advertising is brand, rather than specific performance, which makes us doubly vulnerable,” he stressed.


Musk continued, “That is why the priority over the past ten days has been to develop and launch Twitter Blue Verified subscriptions,” elaborating: 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.


However, Musk said the social media company will still be “significantly reliant on advertising,” so he is working to “ensure that Twitter continues to be appealing to advertisers.” The billionaire emphasized: “The road ahead is arduous and will require intense work to succeed.”


The Tesla and Spacex CEO added that Twitter’s policy will be changed and remote work is no longer allowed. Starting Thursday, everyone employed by the social media giant is required to be in the office for a minimum of 40 hours per week unless they are physically unable to travel or have critical personal obligations.


Moreover, Musk held an emergency all-hands meeting with Twitter employees Wednesday. He reportedly said: Bankruptcy isn’t out of the question.


Following the meeting, two Twitter executives, Robin Wheeler and Yoel Roth, reportedly left the company. Last week, Musk laid off about 50% of Twitter employees, claiming that he had no choice since the social media company is losing over $4 million a day.


Musk admitted Wednesday that his new $8-a-month verification system has problems. “Far too many corrupt legacy Blue ‘verification’ checkmarks exist, so no choice but to remove legacy Blue in coming months,” he tweeted. Nonetheless, he insisted that usage of Twitter has risen since he took over the platform.


This week, he outlined how Twitter could generate revenue as a payment company after it filed paperwork with the U.S. Financial Crimes Enforcement Network (FinCEN) to start a payment business. Tags in this story Elon Musk, elon musk twitter, Twitter


Do you think Twitter will go bankrupt? Let us know in the comments section below. Kevin Helms


A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography. Twitter Files for Payment Business — Elon Musk Says Platform Could Offer Debit Cards, Money Market Accounts FEATURED | 2 days ago Kim Kardashian and Floyd Mayweather Win Tentative Court Ruling in Ethereummax Lawsuit: Report FEATURED | 4 days ago


Image Credits: Shutterstock, Pixabay, Wiki Commons Previous articleFTX CEO Confirms Reports of ‘Unauthorized Access to Certain Assets,’ Team Is ‘Coordinating With Law Enforcement’ Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article. Read disclaimerShow comments More Popular NewsIn Case You Missed ItRipple CEO: SEC Lawsuit Over XRP "Has Gone Exceedingly Well"


The CEO of Ripple Labs says that the lawsuit brought by the U.S. Securities and Exchange Commission (SEC) against him and his company over XRP "has gone exceedingly well." He stressed: "This case is important, not just for Ripple, it’s ... read more.Bitcoin ATM Operator Indicted in New York Allegedly Running Illegal Business Attracting Criminals Goldman Predicts US Recession Odds at 35% in 2 Years, John Mauldin Wouldn"t Be Surprised if Stocks Fell 40% Digital Ruble ‘Much Needed,’ Russia’s Central Bank Says, Won’t Delay Testing Terra"s Algorithmic Dollar-Pegged Crypto UST Is Now the Third-Largest Stablecoin

News Feed

Bitcoin Crushes Previous All-Time Price Highs Surpassing 2017’s Bull Run
Bitcoin Crushes Previous All-Time Price Highs Surpassing 2017"s Bull Run Digital currency markets are on a tear this week, as a myriad of crypto assets have seen
Justin Sun says removing 12K Bitcoin from USDD is just ‘DeFi 101’
Stephen Katte5 hours agoJustin Sun says removing 12K Bitcoin from USDD is just ‘DeFi 101’USDD’s Bitcoin collateral was removed without a vote from its DAO, but Justin Sun insists it’s a normal event in DeFi.1781
Is Bitcoin a scam? 5 myths surrounding BTC and how to debunk them
Marco Castrovilli4 hours agoIs Bitcoin a scam? 5 myths surrounding BTC and how to debunk themIn our latest video, we delve into the five most prevalent myths about Bitcoin, meticulously separating fact from fiction.1191
Janet Yellen Says ‘Critical’ to Establish Strong Crypto Regulation — ‘We Haven’t Suggested Outright Banning’
Janet Yellen Says "Critical" to Establish Strong Crypto Regulation — "We Haven"t Suggested Outright Banning" U.S. Treasury Secretary Janet Yellen says “it is critical to pu
Paypal Upgrades Crypto Service — Now Lets Users Transfer Cryptocurrencies to Other Wallets, Exchanges
Paypal Upgrades Crypto Service — Now Lets Users Transfer Cryptocurrencies to Other Wallets, Exchanges Paypal has begun letting users transfer cryptocurrencies between its platfor
Tom Mitchelhill3 hours agoVitalik Buterin says Ordinals have revived ‘builder culture’ on BitcoinThe Ethereum co-founder said new developments on Bitcoin provide “good” pushback against “laser-eye” maximalist
FDIC Issues Crypto-Related Cease and Desist Orders to 5 Companies Including FTX US Exchange
FDIC Issues Crypto-Related Cease and Desist Orders to 5 Companies Including FTX US Exchange The Federal Deposit Insurance Corporation (FDIC) has sent a cease and desist letter to f
Coronavirus Bailouts: US Banking Watchdogs Waive Hundreds of Regulations, Red Tape, Financial Oversight
Coronavirus Bailouts: US Banking Watchdogs Waive Hundreds of Regulations, Red Tape, Financial Oversight In 2019, cryptocurrency and blockchain businesses saw more regulation than
Pixelmon CEO bets on fractionalized NFTs for its huge comeback
Tom Mitchelhill6 hours agoPixelmon CEO bets on fractionalized NFTs for its huge comebackThe Pokemon-esque crypto game was once mocked for raising $70 million only to produce pixelated monstrosities, but its CEO Giulio Xi
Gareth Jenkinson13 hours agoThailand delays digital money handout, critics call for probeThailand’s government has delayed the launch of a planned digital money program aimed at stimulating its economy, while oppositio
Mt Gox Creditors Updated, Trustee Says Rehabilitation Custodian Is ‘Currently Preparing to Make Repayments’
Mt Gox Creditors Updated, Trustee Says Rehabilitation Custodian Is "Currently Preparing to Make Repayments" On August 31, 2022, the Mt Gox trustee Nobuaki Kobayashi explained in a
Indian Government Consulting With IMF, World Bank on Crypto Policy
Indian Government Consulting With IMF, World Bank on Crypto Policy India’s government is consulting with the International Monetary Fund (IMF), the World Bank, and Indian re