In a recent all-hands meeting with Twitter employees, new owner, Elon Musk, announced that “bankruptcy is not out of the question” as the company continues to bleed money. While Twitter has been struggling financially for several years and has not earned a profit since 2019, the social media platform has experienced a “massive drop” in revenue as several advertisers have pulled away from the platform since Musk’s takeover two weeks ago.
In an effort to make Twitter profitable, Musk is shifting the focus of the platform’s revenue from advertising to the Twitter Blue subscription service which users can subscribe to for 8* per month. Unfortunately, that change in direction has not gone well as Twitter Blue has been targeted by bots and scammers.
According to The Information, Musk told employees, “The reason we’re going hardcore on subscribers is to keep Twitter alive.” Musk continued by warning that “without significant subscription revenue, there is a good chance Twitter will not survive the upcoming economic downturn.”
Musk has not only been busy attempting to make Twitter profitable but he has also been cleaning house, firing 3,700 employees last week, and reviewing and eliminating many of the struggling company’s policies. Musk completely canceled Titter’s “work from anywhere” policy. He told Platformer, “If you can physically make it to an office and you don’t show up, resignation accepted.”
While Musk works to transition Twitter from a heavily censored social media platform to a home for free speech, the Federal Trade Commission has been “tracking the developments at Twitter with deep concern” and is considering taking action to force the platform to comply with a “consent order” requiring Twitter to comply with specific security and privacy requirements. FTC director of public affairs, Douglas Farrar, said, “No CEO or company is above the law, and companies must follow our consent decrees. Our revised consent order gives us new tools to ensure compliance, and we are prepared to use them.”
The FTC is not the only entity expressing its discontent with Twitter. Numerous Twitter employees took to the platform’s slack channel after the all-hands meeting to express their disgust asking, “What’s the motivation? Work hard or get fired?” and “How do you plan to restore totally destroyed trust?”
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While Musk works to financially secure Twitter’s future and overhauls its policies, he may have bigger problems brewing – a disgruntled workforce that may have a mass exodus of its own.