Elon Musk has told his staff at Titter saying Twitter could go bankrupt.
The Tesla CEO and Twitter chief also informed Twitter employees last week saying that the company’s “economic picture ahead is dire.”
He said, “bankruptcy isn’t out of the question,” as the billionaire stressed the need for the employees to speed up development and introduction of its subscription feature.
According to Musk, “Without significant subscription revenue, there is a good chance Twitter will not survive the upcoming economic downturn.”
Recall that Elon Musk bought Twitter for $44 billion about two weeks ago.
Ever since he bought the technology platform, Twitter has been coming up with drama.
Musk 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:
Explaining further to his Twitter employees, Musk said the economic situation is even worse for Twitter because the social media technology company highly depends on advertising for its revenue.
According to him, “70% of our advertising is brand, rather than specific performance, which makes us doubly vulnerable.”
“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, the billionaire added that Twitter will still be “significantly reliant on advertising.”
He said he 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.”
Musk Scraps Remote Work For Twitter Employees With If..:
Meanwhile, the Tesla and Spacex CEO has scrapped remote working for Twitter employees, though with exceptions.
He said he is changing Twitter’s policy to disallow remote work.
According to Musk, 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.
“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.
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