New Twitter owner Elon Musk raised the possibility of the platform’s bankruptcy during his first mass email with the platform remaining staff.
Bloomberg mentioned That during his first interaction with employees, he warned the workforce about the loss of perks (Musk has already banned working from home) and the prospect of an 80-hour week.
Meanwhile, mass resignations among Twitter’s privacy and security teams prompted an FTC spokesperson to say the federal agency is closely monitoring Elon Musk’s Twitter movements with “deep concern.”
probability of bankruptcy
On Thursday, Musk raised in his email to employees the possibility of the social media platform’s bankruptcy, reportedly telling employees that “bankruptcy is not out of the question.”
“Without significant subscription revenue, there is a good chance Twitter will not survive the next economic downturn,” Musk reportedly said in the email. “We need about half of our revenue to sign up.”
It comes as major advertisers are pausing or withdrawing their ad spend on Twitter, amid concern over recent developments at the company and Elon Musk’s free speech approach, which they fear will allow inappropriate content to appear alongside their ads.
This is a serious problem for the platform, as 90 percent of Twitter’s revenue is said to stem from advertising fees.
Musk confirmed earlier this week that ad spend on Twitter “has decreased significantly.”
YouTube to remember was in 2019 hit hard, then Big-name brands have pulled their ads from the platform Due to concerns, ads were shown alongside extremist content. YouTube quickly solved the problem.
Credit experts also point out that when Musk bought Twitter for $44 billion, that financial deal left Twitter in a precarious position, Reuters reported.
Thursday began with the news that three senior security officials – Chief Information Security Officer Leah KessnerChief Privacy Officer Damien Keran and Chief Compliance Officer Marian Fogarty have all resigned.
Their resignations led to a warning from the Federal Trade Commission (FTC) – more on this below.
Following those resignations, Yoel Roth, the head of safety and integrity, who has been mandated since the Musk acquisition to speak publicly about advertisers and users’ concerns about the platform, became the latest executive to leave the company.
This came as a surprise as Ruth appeared as part of Musk’s new leadership team. Oversaw Twitter’s response to combating hate speech, misinformation and spam on the service,
Two people familiar with the matter told Reuters he resigned on Thursday. in Twitter profile on ThursdayRoth described himself as the “former head of trust and safety” at the company.
Meanwhile, Twitter’s head of customer solutions, Robin Wheeler, was also reported to have submitted her resignation, but she was persuaded to stay by Musk himself.
She later tweeted, “I’m still here.”
I’m still here.
– Robin Wheeler (@robinw) November 11, 2022
It was speculated online that all of these resignations came from the team that had to certify “in person” that Twitter was complying with the privacy protections required by the Federal Trade Commission, and they were unwilling to do so, so they all quit.
This resulted in the Federal Trade Commission issuing a very public statement, stating that it is closely monitoring the movements of Twitter under the leadership of Elon Musk.
The FTC’s settlement in May was built on a 2011 agreement requiring the company to install reasonable privacy safeguards and be responsible for its information security program.
In May 2022, when Twitter agreed to pay a $150 million fine for allegedly deceiving users about how their phone numbers were being used to sell ads, the FTC secured new concessions. Under this order, Twitter has reportedly agreed to install enhanced privacy software and information security software with specific requirements.
If Twitter does not comply with this agreement, the Federal Trade Commission can issue fines of up to billions of dollars, according to an attorney’s note to employees.
In the note posted on Slack on Twitter and all employees can have it the edgeA lawyer on the firm’s privacy team wrote: “Elon has shown that his only priority with Twitter users is how to monetize them. I don’t think he cares about human rights activists. Dissenters, our users in unmonetized areas, and all the other users who have made Twitter an arena The cosmopolitan city I spent so much time building, and we all love.”
Amid all this, the Federal Trade Commission said it was monitoring Twitter with “deep concern” after the resignations of the three privacy and compliance officers. These resignations may put Twitter at risk of violating regulatory orders.
An FTC spokesperson was quoted as saying: “We are following the latest developments on Twitter with deep concern.” CNBC As he said in a statement. “No CEO or company is above the law, and companies must follow our approval decisions. Our amended consent order gives us new tools to ensure compliance, and we are ready to use them.”
Meanwhile, Musk’s attorney, Alex Spiro, reportedly told some employees in an email late Thursday that Twitter would remain compliant.
Last month (before Musk took control of the platform), Twitter claimed that US federal authorities were Investigating Elon Musk’s “behaviour” While turning it on and off when acquiring again on Twitter.
It was refused at the time.
But earlier this week when asked whether Elon Musk posed a threat to national security, President Joe Biden said that “the billionaire’s relationships with other countries are worth considering.”
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