Twitter may not be able to meet its payment obligations
Mass layoffs and a work-from-home ban: apparently surprised by a weak balance sheet, the new Twitter boss Elon Musk is taking hard measures.
Mass layoffs and a work-from-home ban: apparently surprised by a weak balance sheet, the new Twitter boss Elon Musk is taking hard measures.
Yesterday on November 10, Elon Musk warned Twitter employees that the company could have a "negative net cash flow of several billions US dollars" next year according to Bloomberg. The report says "payment problems are not ruled out" unless Twitter manages to "bring in more money than it spends". Meanwhile, buying up all Twitter shares reportedly cost about $13 billion and added to liquidity loss with a repayment rate of about $1 billion per year.
Many advertising agencies are pulling out
The loss of major ad agencies, which took the takeover poorly, could also be a reason. The question is whether Musk just wants to use the bad news to drum up support for the new subscription model with the "blue checkmark," which was not well received on Twitter. Since taking over, the Tesla boss presents himself as a great savior who will do anything to keep Twitter out of bankruptcy. This has led to mass layoffs and other measures. The South Africa-born CEO also announced a work-from-home ban.
Elon holds a round of layoffs
Musk has already fired much of the management and plans to lay off a total of 50 percent of employees. In the meantime, Dogecoin’s price in a 24-hour comparison is just under 8% higher and he has not shown drastic swings yet. Recently the Memecoin hit a three-month high when Musk announced Dogecoin payments on Twitter. Whether the Tesla CEO will carry out further crypto plans for Twitter remains to be seen.
