Will Twitter go bankrupt after changing its new owner? Many senior executives resigned!

Less than two weeks after Musk bought Twitter for $44 billion, he has warned in his first large-scale conference call with employees that the company could go bankrupt if it doesn't start generating more cash. According to people familiar with the matter, if bankruptcy is true, the constant resignation of Twitter executives will accelerate the pace of bankruptcy, according to Bloomberg News.

Previously, Musk noted that Twitter would not be able to "survive the next recession" if it could not increase subscription revenue to offset declining advertising revenue.

While the acquisition shielded Twitter from public market scrutiny, Musk saddled the company with nearly $13 billion in debt.

Twitter executives leaving

Since taking office, Musk has fired half of the employees, removed most of the executives, and ordered the remaining employees to stop working from home.

Faced with this uncertainty and distrust of how Elon Musk will take over Twitter, many senior Twitter executives have decided to resign before being fired.

Twitter has also faced a backlash from some advertisers concerned about the tycoon's content moderation plans, as well as a lack of confidence from debt investors and credit rating agencies.

It is reported that after the departure of Twitter's "former head of trust and safety", information security chief Lea Kissner tweeted that she had resigned. According to an internal message posted on Twitter's Slack messaging system by a lawyer on its privacy team and seen by Reuters, privacy director Damien Kieran and compliance director Marianne Fogarty have also decided to leave Twitter. Robin Wheeler, the top advertising sales executive, also expressed his intention to leave. But Musk retained him.

Musk has used threats of financial ruin to motivate employees in the past, a person familiar with his management style told Bloomberg News, saying he was trying to convey the idea that Twitter would be in a very difficult position if people didn't work hard.

The Information and Platformer previously reported Musk's bankruptcy filing and hinted at products he wants to launch including payments, more conversational ads and interest-bearing checking accounts.

FTC expresses concerns

On the other hand, the US Federal Trade Commission (FTC) announced that it is "deeply concerned" about Twitter after three Twitter executives left. These disclaimers may put the social network at risk of violating regulatory orders.

Meanwhile, Twitter is currently subject to a consent decree with the FTC that regulates how it handles user data and could be fined for violations.

Editor ✎Estella/

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