Bitcoin News and Finance Elon Musk Tells Twitter Staff Economic Picture Ahead Is Dire — ‘Bankruptcy Isn’t Out of the Question’ Skip to main content

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

Elon Musk Tells Twitter Employees: The Economic Picture Ahead Is Dire, Might Not Survive Upcoming Economic Downturn

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.

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

Comments

Popular posts from this blog

Custodial Lightning Network Service Attack Discovered by LN ‘Newbie’ — Hacker Strikes 6 LN Custodians

On September 18, a Redditor posted to the r/bitcoin forum and explained how he discovered a way to “attack [the] lightning Network’s custodial services.” The Reddit account dubbed “Reckless Satoshi” wanted to figure out if a “discrepancy between real routing fees and service’s transaction fee can be exploited for a profit.” The researcher disclosed that he wanted to see how large the damage could be and said “it is bad.” 6 Lightning Network Custodial Services Attacked, Researcher Discloses Findings to Offenders Prior to Public Disclosure A Redditor called Reckless Satoshi published a disclosure post on r/bitcoin this past Saturday and disclosed how he had found a vulnerability with routing fees and some of the Lightning Network’s custodial services. The research attack was done in good faith and after it was complete he disclosed the bugs to the offending services before publishing his findings. Reckless Satoshi used the Lightning Network (LN) attack on six different services incl...

Axie Infinity Down 40% Since Last Week’s Price High, Protocol Revenue Outshines Competitors

Last week, the game token leveraged within the Axie Infinity gaming universe skyrocketed to all-time highs, while other crypto markets remained extremely lackluster. During the last seven days, Axie Infinity’s platform token has dropped significantly in value shedding more than 12%. Meanwhile, the game platform’s smooth love potion token has slid over 8% over the last 24 hours. Axie Infinity Down More Than 40% Since All-Time High Not too long ago, the axie infinity (AXS) token was a topical conversation because it reached an all-time high on July 15. At the time, AXS managed to capture $28.93 per unit and since then it has shed 12.8% during the last seven days. The axie infinity (AXS) token is used within the blockchain-based game that involves battles between token-based creatures called “Axies.” AXS is used for the game’s governance system as well as other actions within the game. At the time of writing axie infinity (AXS) is exchanging hands for $16.70 per coin. AXS/USD on Ju...

Play-to-Earn Game From Polker (PKR) Exchange Listing – Endorsed by Akon

The Play-to-Earn NFT based Polker.Game ‘s native token $PKR has been officially listed on the popular centralized exchange BitMart. Polker.game has been in the spotlight recently as Akon, the American R&B superstar and record producer gave his official endorsement of polker stating that the “game is revolutionary” and that Polker is “hands down.. the best play to earn, NFT game in the space.”. With the BitMart listing and celebrity endorsement from Akon, Polker is perfectly positioned to become a major player in the Play-to-Earn league. Watch Akon’s Video Here What is Play-to-Earn? Although not a new concept, play-to-earn has become a trending term due to the popularity of the NFT game AXIE infinity. In the past, previous play-to-earn games have also achieved success – however, thanks to the huge amount of development in the blockchain space in recent years the gaming experience is now massively improved. Play-to-Earn games are essentially free to play and open to anyone and...

China to Crack Down on Copyright Infringement Through NFTs

Authorities in China are going after creators of digital collectibles based on other people’s works of art, the use of which was not authorized. The government offensive is part of a campaign to combat online copyright infringement and piracy with the participation of several departments. Regulators in China Move to Strengthen Copyright Supervision of Online Platforms The National Copyright Administration of China (NCAC) has recently launched a campaign against copyright infringement and piracy on the internet, together with the Ministry of Industry and Information Technology, the Ministry of Public Security, and the State Internet Information Office of the People’s Republic. A major objective of the initiative is to improve copyright supervision of online businesses by investigating cases involving the sale and distribution of infringing products on short video, live broadcast and e-commerce platforms, and promptly dealing with infringing content, the agency announced in a press r...
Blogarama - Blog Directory