In his first address to Twitter employees after buying the company for $44 billion, Elon Musk said that Twitter is likely to go bankrupt if it does not start earning more. People familiar with the situation said that over two weeks, Elon Musk fired half of Twitter's employees. Most top executives were ousted, and other employees were ordered to stop working from home. Executive officer Yoel Roth was considered among the people close to Musk, but he, too, had to leave the company. Another, Robin Wheeler, has resigned, but Musk has convinced him to stay on.
Musk has given a loan of about $ 13 billion to the company, which is now in the hands of seven Wall Street banks. The trust in the company has gone down so low. Even before Musk's bankruptcy comments, some funds were offering to buy debt for as little as 60 cents on the dollar. Usually, this offer is made for companies deemed to be in financial distress. Musk issued several more warnings in his address. Employees will have to work 80 hours a week, reduce free lunch and other office allowances, and end up working from home.
Musk said, "If you don't want to come, resign." Discussing Twitter's finances and future, Musk said the company urgently needed to move the $8 subscription product to Twitter Blue. A person familiar with Musk's management style said that in the past, Musk had used the threat of the company's financial ruin to motivate his workers. This person said that Musk is trying to convey the impression that if people don't work hard, Twitter will be in dire straits. Musk has also indicated the products he wants to introduce. These include payment, advertising, and making onboarding easy on Twitter app like Tiktok.