Musk raised his hands, said - Twitter may go bankrupt
Musk Warns Of Twitter Bankruptcy After advertisers distanced themselves from Twitter and top executives left the company, Musk has also not ruled out that the company could go bankrupt. At the same time, the US government regulator is viewing Twitter's top privacy and compliance officials with great concern.
Two weeks after buying the company for $44 billion, Musk warned employees on a conference call that he cannot rule out bankruptcy. Musk said during his first call to employees that the company could lose billions of dollars in the coming fiscal year. He had earlier claimed that the company was losing more than $4 million a day due to the departure of advertisers after he took office.
Thousands of employees have been fired after Musk bought Twitter. The firm is in disarray. According to reports, now Twitter America's Chief Privacy Officer Damian Kieran, Chief Compliance Officer Marianne Fogarty and the company's Chief Security Officer Lee Kissner have also resigned. This could increase the risk of violating Twitter's regulatory orders. The US Competitive Business Commission (FTC) said that Twitter's new chief executive Elon Musk or the company is "not above the law". Douglas Farrar, the FTC's director of public affairs, said that we have legal means of getting our point across, which we are prepared to use.
The firm was fined $150 million in May for selling users' data. After this the firm had to implement a privacy and security program, agreeing to the new privacy rules. On the other hand, Musk's plan to buy verified status for users also fears that it could link Twitter to fake accounts.
Since taking over, Musk has fired former chief executive Parag Agarwal and several people in the front line of management. The company's an advertising and marketing chief has also left the company. In such a situation, the number of people who ensure compliance with the government rules with Twitter has decreased.
Some big advertisers have been nervous about the direction Musk is taking the social media firm. Some brands are worried that Musk will ease content moderation rules and reverse a permanent Twitter ban imposed on controversial figures, including former US President Donald Trump.