{"id":14463,"date":"2022-11-13T00:32:42","date_gmt":"2022-11-13T00:32:42","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/elon-musk-tells-twitter-staff-economic-picture-ahead-is-dire-bankruptcy-isnt-out-of-the-question-featured-bitcoin-news\/"},"modified":"2022-11-13T00:32:42","modified_gmt":"2022-11-13T00:32:42","slug":"elon-musk-tells-twitter-staff-economic-picture-ahead-is-dire-bankruptcy-isnt-out-of-the-question-featured-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/elon-musk-tells-twitter-staff-economic-picture-ahead-is-dire-bankruptcy-isnt-out-of-the-question-featured-bitcoin-news\/","title":{"rendered":"Elon Musk Tells Twitter Staff Economic Picture Ahead Is Dire \u2014 ‘Bankruptcy Isn’t Out of the Question’ \u2013 Featured Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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Tesla CEO and Twitter chief Elon Musk has informed Twitter employees that the company\u2019s \u201ceconomic picture ahead is dire.\u201d Noting that \u201cbankruptcy isn\u2019t out of the question,\u201d the billionaire stressed that \u201cWithout significant subscription revenue, there is a good chance Twitter will not survive the upcoming economic downturn.\u201d<\/strong><\/p>\n

Twitter Could Go Bankrupt, Says Elon Musk<\/h2>\n

Elon Musk, the billionaire who bought<\/a> Twitter for $44 billion about two weeks ago, sent his first email to all Twitter employees Wednesday informing them of the social media platform\u2019s grim financial situation. \u201cThere is no way to sugarcoat the message,\u201d Musk wrote, adding:<\/p>\n

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Frankly, the economic picture ahead is dire.<\/p>\n<\/blockquote>\n

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. \u201c70% of our advertising is brand, rather than specific performance, which makes us doubly vulnerable,\u201d he stressed.<\/p>\n

Musk continued, \u201cThat is why the priority over the past ten days has been to develop and launch Twitter Blue<\/a> Verified subscriptions,\u201d elaborating:<\/p>\n

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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.<\/p>\n<\/blockquote>\n

However, Musk said the social media company will still be \u201csignificantly reliant on advertising,\u201d so he is working to \u201censure that Twitter continues to be appealing to advertisers.\u201d The billionaire emphasized: \u201cThe road ahead is arduous and will require intense work to succeed.\u201d<\/p>\n

The Tesla and Spacex CEO added that Twitter\u2019s 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.<\/p>\n

Moreover, Musk held an emergency all-hands meeting with Twitter employees Wednesday. He reportedly said<\/a>:<\/p>\n

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Bankruptcy isn\u2019t out of the question.<\/p>\n<\/blockquote>\n

Following the meeting, two Twitter executives, Robin Wheeler and Yoel Roth, reportedly left the company. Last week, Musk laid off<\/a> about 50% of Twitter employees, claiming that he had no choice since the social media company is losing over $4 million a day.<\/p>\n

Musk admitted Wednesday that his new $8-a-month<\/a> verification system has problems. \u201cFar too many corrupt legacy Blue \u2018verification\u2019 checkmarks exist, so no choice but to remove legacy Blue in coming months,\u201d he tweeted. Nonetheless, he insisted that usage of Twitter has risen since he took over the platform.<\/p>\n

This week, he outlined how Twitter could generate revenue as a payment company after it filed<\/a> paperwork with the U.S. Financial Crimes Enforcement Network (FinCEN) to start a payment business.<\/p>\n

Do you think Twitter will go bankrupt? Let us know in the comments section below.<\/strong><\/em><\/p>\n

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\nKevin Helms <\/h6>\n

\nA student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

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Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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