Arab Press

بالشعب و للشعب
Sunday, May 31, 2026

Elon Musk says Twitter 'may face bankruptcy' as more staff quit and top regulator issues warning

Elon Musk says Twitter 'may face bankruptcy' as more staff quit and top regulator issues warning

Musk appeared to brush off reports of another day of disarray at his new company, tweeting: "Usage of Twitter continues to rise. One thing is for sure: it isn't boring!"
Elon Musk raised the possibility of Twitter going bankrupt as the company endured perhaps its most chaotic day since he took control two weeks ago.

The world's richest man outlined his concerns about the firm's precarious financial position during his first mass call with its remaining employees, having already carried out thousands of sackings.

Twitter endured further departures as reports of the call first emerged, with its head of trust and safety, Yoel Roth, updating his profile to indicate that he had left.

In an earlier staff email, Musk warned Twitter - which he bought for $44bn at the end of October, after spending months trying to get out of it - would not "survive the upcoming economic downturn" without boosting revenue.

Musk wants to do that via the revamped $8-per-month Twitter Blue service, designed to offset falling advertising income as companies fret about his stance on content moderation.

Fears over his approach to user privacy also prompted an intervention by America's Federal Trade Commission on Thursday evening, warning "no chief executive or company is above the law".

Musk himself appeared to brush off reports of another day of disarray at his new company, tweeting: "Usage of Twitter continues to rise. One thing is for sure: it isn't boring!"

Twitter's grim finances

During his meeting with staff on Thursday, Musk reportedly warned Twitter may lose billions of dollars next year.

Bankruptcy was therefore not out of the question, he said, as the company grapples with $13bn (£11bn) of debt after his takeover deal and interest payments totalling almost $1.2bn (£1bn) over the next 12 months.

Those payments exceed Twitter's most recently disclosed cash flow, which was $1.1bn (£900m) at the end of June.

Musk said the firm was losing $4m (£3.4m) each day, largely because of advertisers putting spending on hold due to fears about his "free speech absolutist" position.

His attempted solution, Twitter Blue, has ended up somewhat proving the point. It entitles anyone who signs up to a blue checkmark previously reserved for verified accounts, but has been abused by pranksters posting offensive messages under the guise of Tony Blair, George W Bush, and even Nintendo mascot Super Mario.

The option to sign up has since disappeared from Twitter's iOS app.

 


More staff departures

Musk laid off half of Twitter's 8,000-strong workforce soon after his takeover, having moved even more quickly to dismiss its top executives.

This week has seen even more people leave, chief among them Mr Roth, who has overseen Twitter's response to hate speech, misinformation, and spam.

Mr Roth had been one of the more vocal remaining members of Twitter's top team since Musk's takeover, assuring users and advertisers that the platform was still committed to combating those issues.

His profile changed on Thursday to indicate that he no longer worked at Twitter - he is believed to have resigned.

Earlier in the day, chief information security officer Lea Kissner tweeted that she had quit, while an internal message seen by Reuters news agency said chief privacy officer Marianne Fogarty had also gone.

It came after Musk told staff he was banning working from home, with all workers expected to be in the office for at least 40 hours a week.

Warning from regulator

The exodus of safety, security, and privacy officers saw the US Federal Trade Commission (FTC) express its "deep concern" about developments at Twitter.

In May, Twitter agreed to pay $150m (£128m) to settle allegations by the FTC it misused private user information to target advertising after telling them the data was collected purely for security reasons.

Douglas Farrar, the FTC's director of public affairs, told Reuters: "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."
Newsletter

Related Articles

Arab Press
0:00
0:00
Close
Japanese Technology Firm Fujitsu Launches Advanced Artificial Intelligence Tool for Corporate Disclosures
South Africa Officially Launches Nationwide Campaign for Highly Contested Local Government Elections
United Kingdom Commits Additional Funding for Unexploded Ordnance Clearance in Laos
Singapore Announces Stringent New Greenhouse Gas Regulations for Commercial Cooling Systems
Cambodia and Thailand Hold High-Level Border Security Talks at United Nations Headquarters
Myanmar Military Government and China Sign Major Agreement to Upgrade Media and Cultural Cooperation
Knife Attack at Swiss Train Station Leaves Three Injured in Suspected Act of Domestic Terrorism
Transnational Extortion Gang Threatens Canadian Police With Army of One Thousand Armed Operatives
Australia Imposes Forty-Two-Day Quarantine on Cruise Ship Passengers Following Deadly Hantavirus Outbreak
International Monetary Fund Unlocks Seven Hundred Million United States Dollars for Sri Lanka Following Economic Reforms
Australia Launches Record One Point Four Billion Dollar Lawsuit Against Chemical Giant 3M Over Contamination
China and Canada Foreign Ministers Meet in Ottawa in Effort to Stabilize Strained Diplomatic Ties
Indonesia Demands Urgent United Nations Security Council Reform Amid Escalating Global Conflicts
Extreme Weather Patterns Trigger Severe Drought in Madagascar and Destructive Flooding in East Africa
Indian State of Karnataka Faces Political Upheaval as Chief Minister Siddaramaiah Abruptly Resigns
Philippines and Japan Reaffirm Defense Ties as Crucial for Indo-Pacific Regional Stability
Norway Joins French Nuclear Deterrence Initiative in Major Shift for European Security Architecture
Global Critical Mineral Alliances Expand as Western Nations Move to Counter Chinese Supply Dominance
United States Imposes Fifty Percent Tariffs on Mexican Steel and Aluminum Ahead of Trade Pact Review
European Union and China Head Toward Major Trade Conflict Over Clean Technology Exports
United States Economic Growth Severely Downgraded to One Point Six Percent as Stagflation Fears Mount
World Health Organization Warns Central African Ebola Epidemic is Outpacing Containment Efforts
United States Treasury Department Conditions Sanctions Relief on Reopening of the Strait of Hormuz
Iranian Air Defenses Intercept and Destroy United States Military Drone Over Bushehr Province
Iranian Armed Forces Launch Ballistic Missiles Toward Unspecified Targets Prompting Regional Condemnation
United Nations Secretary-General Warns Global Order Facing Highest Level of Conflict Since 1945
Israel Issues Sweeping Evacuation Orders in Southern Lebanon Amid Intensified Hezbollah Conflict
Russia Announces Systemic Military Strikes Targeting Ukrainian Defense and Energy Infrastructure
United States and Iranian Negotiators Reach Draft Agreement to Extend Ceasefire and Resume Nuclear Talks
United Nations Security Council Deeply Divided Over United States Capture of Venezuelan President
US and Iran Exchange Direct Military Strikes Amid Fragile Gulf Ceasefire
World Health Organization Warns of Catastrophic Ebola Outbreak in DR Congo
Russia Threatens New Wave of Strikes on Ukrainian Infrastructure and Embassies
Scientists Warn Atlantic Ocean Currents Could Collapse Faster Than Projected
Anthropic Reaches $900 Billion Valuation in Historic AI Funding Round
Washington Imposes Crippling Sanctions on Iranian Maritime Authority
Japan and the Philippines Initiate Strategic Intelligence-Sharing Pact
Microsoft Deploys Autonomous Computer-Using AI Agents to Global Markets
Anthropic Secures $45 Billion Compute Infrastructure Agreement With SpaceX
U.S. Director of National Intelligence Resigns Amid Administration Shakeup
Micron Technology Crosses Trillion-Dollar Valuation Amid Unprecedented Hardware Demand
Canada and Germany Finalize Historic Long-Term LNG Export Agreement
China Expands International Travel Restrictions on Domestic AI Researchers
Japan Approves Sweeping Overhaul of National Intelligence Apparatus
Global Airlines Scramble Logistics as Middle East Airspace Remains Fractured
Japan's Naphtha Imports Plunge 47 Percent Amid Strait of Hormuz Closure
Global Crude Prices Retreat Below $96 as Gulf Tensions Momentarily Ease
Generative AI Outperforms Human Baselines in Landmark Global Creativity Study
NASA Partners With Private Aerospace to Unveil Permanent Lunar Base Architecture
South Korean Equity Markets Surge on Next-Generation Memory Chip Frenzy
×