Top regulator issues warning as more staff from the social media platform quit
As the social media giant Twitter enters the second week of a takeover by the billionaire Elon Musk, a report by Sky News on Friday, November 11, stated that the company is headed to a possible bankruptcy.
According to the report, during his staff meeting at Twitter headquarters, Musk warned employees that Twitter may end up losing billions of dollars in 2023. ¨Bankruptcy was therefore not out of the question¨, Musk said. After thousands of layoffs, Musk expressed his concerns about the firm’s dire financial state during his first mass call with its remaining employees, the report said.
The report also stated that the company presently faces a huge debt of $13 billion ever since its takeover. Aside from this the payment of interest, the report said, amounts to $1.2bn over the next one year. As these payments exceed Twitters present cash flow of $1.1bn, the possibility of bankruptcy looms over the company.
Musk also said that the company was losing $4 million (£3.4 million) per day, owing to advertisers delaying spending over concerns about his “free speech absolutist” stance.
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