Elon Musk’s takeover of Twitter continued lurching along on Thursday with the eccentric new CEO telling employees the company may have to file for bankruptcy.
In addition, top executives Musk recruited to participate in a Twitter Spaces discussion with him on Wednesday, abruptly quit Thursday, according to multiple published reports.
Musk told employees — or at least the ones left after drastic layoffs last week — that bankruptcy was a possibility, Bloomberg reported. The comments came on a hastily arranged all-hands call.
Advertisers have stepped back from the social media site in the wake of Musk’s takeover, at a time when the company now faces massive debt servicing costs to cover the billions of dollars Musk borrowed to buy the company.
On Wednesday Musk held a Twitter Spaces discussion, moderated by executives Robin Wheeler and Yoel Roth, aimed at assuaging advertisers’ concerns. Both executives resigned Thursday, Reuters reported.
In addition, Chief Security Officer Lea Kissner tweeted that she had left the company as well, according to Reuters. The company’s chief privacy officer and chief compliance officer have also resigned, according to the report.
Musk has owned Twitter for two weeks. In that time he has fired the company’s CEO and senior management, launched layoffs of thousands of employees, and promised to set up a moderation council to advise on reinstating suspended accounts, such as former president Trump’s.
Musk bought Twitter for $44 billion in a deal that he spent months trying to get out of, before giving up days before a trial was set to start in Delaware chancery court.