Elon Musk addressed his Twitter employees for the first time on Thursday in an email outlining the state of the company.
- Musk says that bankruptcy is on the table if they can’t solve their ongoing revenue issues or implement a successful subscription model.
- He is working with advertisers in the meantime to reassure them and help them improve revenue during the rollout of Twitter Blue Subscriptions.
- Remote-worker opportunities have been rescinded and all employees are expected to return to the office. “If you can show up in an office and you do not show up at the office: resignation accepted. End of story,” he says.
- He also warned employees to expect 80-hour weeks, limited office perks, and is encouraging workers to propose offbeat ideas to help keep the company afloat.
- Musk sold 19.5 million shares of his Tesla stock worth $3.95 billion to help finance the company and keep it afloat.
Why it’s News
Elon Musk’s email paints a bleak picture of Twitter’s operation in the two weeks since he’s taken over. The company has lost a large portion of its advertising due to the chaotic state of the company and its user base and revenue, which dropped substantially.
Many prominent celebrities are deactivating their profiles in protest and fleeing to Mastodon. The upcoming recession has also created additional revenue concerns.
“Sorry that this is my first email to the whole company but there is no way to sugarcoat the message. Frankly, the economic picture ahead is dire, especially for a company like ours that is so dependent on advertising in a challenging economic climate,” says Musk.
“The road ahead is arduous and will require intense work to succeed,” he continues.
“Musk’s $44 billion buyout of Twitter saddled the company with almost $13 billion in debt, which is being held by Wall Street banks that are now expecting major losses. According to Bloomberg’s sources, hedge funds have been offering at little as 60 cents on the dollar to banks seeking to offload the debt, though banks are unwilling to sell at less than 70 cents. Moody’s Investors Service has cut Twitter’s credit rating, saying the company’s ‘governance risk is highly negative reflecting Moody’s expectation for aggressive financial policies and concentrated ownership by Elon Musk.’” says Newser.