Cascading resignations, warning from the authorities, flight of advertisers, and threat of bankruptcy … The network acquired by Elon Musk ten days ago was taking on water from all sides on Thursday.
“The future is very exciting, I can’t wait to make it happen with you”, said the new boss Thursday, November 10 at the start of an internal meeting, for employees who were not thanked during the massive layoffs a week ago. But the threat of bankruptcy came when he later admitted he didn’t know how big the business was. “would lack income” next year. “It is possible that we are in deficit cash flow of several billion”said Elon Musk, according to messages between employees consulted by AFP. “If there is a long and deep recession, we will have to be able to survive”he continued.
Employees also questioned him about the risks associated with the rapid deployment of new, untested features, the preferred method of the boss of Tesla and SpaceX. Because the US Competition Agency (FTC) issued a rare warning against the platform on Thursday: “We are following recent developments at Twitter with great concern. No CEO or company is above the law”said an FTC spokesperson.
He recalled that the platform must comply with the rules of an agreement with the agency on data security and confidentiality. The agreement in question, revised this year, “gives us new tools to make sure it is respected, and we are ready to use them”, added the spokesperson, in reference to the substantial fines that the FTC could impose. However, many employees aware of these regulations are no longer at Twitter.
Daily controversies
The boss of Tesla and SpaceX laid off half of the 7,500 employees of the Californian company a week ago, ten days after buying it and becoming its sole master on board. Hundreds of people had already left this summer, and executive resignations have continued in recent days. On Thursday, Damien Kieran, data privacy manager, and Lea Kissner, security manager, announced their departures. Other directors have also decided to step aside according to American media, including Yoel Roth, the site’s security manager. He had so far publicly defended Twitter and its controversial new owner. He intervened on several occasions to explain changes or ensure that the fight against disinformation remained a “top priority”.
But the power of the libertarian entrepreneur on the very influential social network worries many authorities, advertisers, users and associations for the defense of minorities. He tried to reassure, recalling that the moderation of content, a safeguard against abuse on the platform, had not changed for the moment. But his hasty decisions and provocations on Twitter have sparked daily controversy for two weeks. Several advertisers have suspended spending on the tweeting network, whose business model is 90% dependent on advertising. Insider Intelligence has downgraded its forecast for Twitter’s advertising revenue by 39% in 2023 and 2024.
“One thing is certain: it’s not boring”
Elon Musk wants to diversify sources of income, from subscriptions for users to content creation tools for influencers. But Wednesday’s cacophonous launch of Twitter Blue, the new $8-a-month formula for authenticating one’s account, resulted in contradictory official statements and the eruption of fake profiles. “Please note that Twitter is going to do a lot of silly things in the coming months. We’ll keep what works and change what doesn’t.”tweeted the multi-billionaire.
At the beginning of the week, he sold nearly $4 billion worth of shares in his flagship Tesla. “I did it to save Twitter”, he told employees Thursday. Elon Musk wanted to buy the Californian company in the spring, then he no longer wanted it in the summer, and was forced to acquire it in the fall to avoid a lawsuit. On Thursday he claimed that using Twitter “continues to rise”adding: “One thing is certain: it’s not boring”.