Twitter Chief Elon Musk warned employees on Thursday that Twitter’s financial landscape was bleak and that bankruptcy is a possibility.
The news comes as top executives are jumping ship. Yoel Roth, who handled the social media platform’s Trust and Safety efforts, and Robin Wheeler, a sales Vp, have reported resigned, as have the company’s chief information security officer, chief privacy officer and chief compliance officer.
According to Bloomberg, the departures are “raising concerns about the company’s ability to keep its platform secure and comply with regulatory rules.”
The social network has a significant debt burden from the acquisition, and has seen a pullback from some advertisers that are concerned about Musk’s plans for content moderation. The Information and Platformer earlier reported Musk’s bankruptcy statement.
Musk also told staff on the call that the days of free food and other perks are over at Twitter’s offices, the person said.
In discussing Twitter’s finances and future, Musk said the company needed to move with urgency to make its $8 subscription product, Twitter Blue, something users will want to pay for given the pull back by advertisers impacting revenue. (TIME)
Musk told employees on Wednesday there would be “difficult times ahead” for the company and put an end to remote work.
The Federal Trade Commission said it’s watching the company closely.
“We are tracking recent developments at Twitter with deep concern,” Douglas Farrar, the FTC’s director of public affairs, told Reuters.
“No CEO or company is above the law, and companies must follow our consent decrees. Our revised consent order gives us new tools to ensure compliance, and we are prepared to use them,” Farrar added.